Synopses & Reviews
Asset AllocationBalancing Financial RiskThird EditionRoger C. Gibson
Winner – Dow Jones Portfolio Management Award
Professional Praise for Roger Gibsons Classic High-Return, Low-Risk Investing Classic …
"Not long ago most families invested little in stocks, even though they have provided superior returns in the long run. Recently, many of these families have plunged significant portions of their savings into narrow sectors of the market. Roger Gibson presents individual investors (and their investment advisors) with a balanced, professional view of the investment process which will much better serve an individuals or familys investment needs."-Harry M. Markowitz, The "Father" of Modern Portfolio Theory, 1990 Nobel Prize Winner, Economic Sciences
"[Gibsons book] should be of enormous benefit to the investor seeking the proper decision-making process. I congratulate [him] for treating the asset allocation subject in such depth and bringing this issuewhich is the critical investment issue for all investorsto the forefront. It is the best overall piece of work Ive seen."-Gary P. Brinson, CFA, President and Managing Partner, Brinson Partners, Inc. Past Chairman, The Institute of Chartered Financial Analysts
"The author balances a solid, understandable, and logical grasp of investment knowledge with an obvious input of practical experience. If all investment advisors would read and understand this book, clients would be far better off."--Darwin M. Bayston, CFA, President, Bayston Capital Management, Inc. Past President and Chief Executive Officer, The Association for Investment Management Research
Asset AllocationBalancing Financial RiskThird EditionRoger C. Gibson
"Asset allocation empowers the individual investor…"-Roger C. Gibson
As financial commentators fill the airwaves with warnings and advice, and coworkers gather around computer screens to track hot stocks, investors find it increasingly difficult to stick with proven, orderly investment strategies. But in the updated third edition of his classic Asset Allocation, Roger Gibson reminds us that choosing a sensible, proven asset allocation strategyconcerned more with the optimal mix of investment classes than with todays hot stock picksis exactly what investors must do to remain sane and successful...And then he shows us how to do it.
Asset Allocation dispenses with luck, market timing, and other "Buy low, sell high" sleights of hand to outline sensible decisions that all investors can make on their own. Less concerned with how investments perform individually than how they perform as a group, it explains how to assemble a long-term portfolio that will actually outperform its partswhile minimizing overall risksno matter what the market environment.
This all-in-one template for successful long-term investing includes: An easy-to-follow, risk-adjusted model for striking the best portfolio balance between equity and fixed-income securities Rewards of Multiple-Asset-Class Investinga new chapter that proves why, over time, diversification is still the only sensible alternative Managing Client ExpectationsGuidelines to help clients ignore short-term fearsand hold to long-term investment strategies Classic lessons of modern portfolio theory placed into the framework of todays tumultuous marketplace Performance tables, charts, figures, and morecompletely updated from the best-selling second editionOverriding principles of successful and low-pressure investing are relatively few, and easy to understand. What becomes difficult is to stick to these principles, remind oneself that both bull and bear markets are historically inevitable, and design a long-term portfolio strategy thatonce the day traders and market timers have pulled out to tally their defeatsprovides day-to-day peace of mind and lifetime financial security.
Asset Allocation learns from history instead of ignoring it. This updated third edition remains todays most valuable resource for understanding and applying historically tested asset allocation principles, and designing an investment strategy that shifts the focus from short-term tips and blips to long-term needs and results.
About the AuthorRoger Gibson, CFA, CFP, is a nationally recognized expert in asset allocations and investment portfolio design. The president of Gibson Capital Management, a leading provider of money management services for high net worth individuals, he was named by both Money and Worth as one of Americas top financial advisors. Gibson is a member of the editorial board of the Journal of Financial Planning and is frequently interviewed by publications including The Wall Street Journal, Forbes, Money, Fortune, The New York Times, and U.S. News and World Report. He is also codirector and founder of the Center for Fiduciary Studies, a research and training organization that operates in association with the Katz Graduate School of Business at the University of Pittsburgh.
Synopsis
The definitive guidebook for successful long-term investing The third edition of Roger C. Gibson's Asset Allocation: Balancing Financial Risk was released in 2000 on the heels of the biggest bull market in a century and amidst talk of a new economy. The bear market that followed was the worst since 1973-1974 and resulted in the destruction of roughly half of the stock market's value. Through it all, Roger Gibson's advice to investors remained the same.
Gibson once again offers techniques to design all-weather portfolios that improve long-term performance, while mitigating overall risks through widely varying market environments.
Grounded in the principles of modern portfolio theory, this fourth edition of his investing classic explains how and why asset allocation works. Gibson demonstrates how adding new asset classes to a portfolio improves its risk-adjusted returns and how strategic asset allocation uses, rather than fights, the forces of capital markets to achieve investment success.
Gibson also addresses the practical side of investing, advocating an approach based on a disciplined execution of the fundamentals--the most important things that investment professionals and lay investors need to focus on to achieve their financial goals. With more than two decades of experience managing clients' portfolios and expectations, he underscores the importance of identifying and working through the emotional and psychological traps that can impede investment success. In this new edition, Gibson offers his proven guidance on multiple-asset-class investing with updated exhibits and research. New topics include:
- A review of the 2000-2002 stock bear market in the context of bull and bear markets over the last 100 years
- An expanded discussion of the dangers of market timing
- Non-traditional asset classes such as real estate securities, commodity-linked securities, and TIPS in a diversified portfolio
- The challenges of “frame-of-reference” risk--the most significant danger confronting the multiple-asset-class investor
- The role of Monte Carlo simulation in retirement planning
Synopsis
A concise, yet comprehensive, guidebook that addresses the practical aspects of investing in fixed income investments.
The Investors Guidebook series presents investment vehicles and strategies from both the issuers and the investors perspectives. Starting with basic concepts and then building to state-of-the-art pricing models, strategies, and tactics, these succinct handbooks will be useful for everyone from new hires through experienced professionals. Unlike most books, which are read once and sit on the shelf, professionals will refer to these books repeatedly throughout their careers.
About the Author
Stuart R. Veale is the president and founder of the Investment Performance Institute Inc., a firm that specializes in providing advanced level practical capital markets training and consulting services to the financial services industry. Previously he was a senior vice president of portfolio strategy and design for the national sales group at Prudential Securities Inc. and senior vice president of advanced training at PaineWebber Inc. He has published six books including The Handbook of the U.S. Capital Markets, Bond Yield Analysis, Tapping the Small Business Market, Essential Investment Math, Essential Asset Allocation, and Stocks, Bonds, Options, Futures.
Table of Contents
Chapter 1: The Importance of Asset Allocation. Chapter 2: Historical Review of Capital Market Investment Performance. Chapter 3: Comparative Relationships Among Capital Market Investment Alternatives. Chapter 4: Market Training. Chapter 5: Time Horizon. Chapter 6: A Model for Determining Broad Portfolio Balance. Chapter 7: Diversification: The Third Dimension. Chapter 8: The Rewards of Multiple-Asset-Class Investing. Chapter 9: Portfolio Optimization. Chapter 10: Know Your Client. Chapter 11: Managing Client Expectations. Chapter 12: Money Management. Chapter 13: Resolving Problems Encountered During Implementation.