Description
Book SynopsisAn all-weather, tactical approach to asset management utilizing Exchange Traded Funds (ETFs) In Asset Rotation, portfolio management pioneer Matthew P. Erickson demonstrates a time-tested approach to asset management that has worked throughout the history of capital markets, in good times and bad.
Table of ContentsAcknowledgments xi
Prologue: David & Goliath xiii
Preface: We Stand on the Precipice of an
Investment Renaissance xv
Chapter 1: taking the 30,000-Foot View 1
Where We Are Today
The Individual Investor 1
Ockham’s razor 3
Our Current economic Landscape 6
The Bottom Line 11
Chapter 2: When the paradigm shifts 13
Why What Worked in the Past May No Longer
Work in the Future
A primer on Modern portfolio theory 15
The treasury run 19
Losing Money in Bonds 29
The Bottom Line 32
Chapter 3: shooting stars 35
The Performance Realities of Mutual
Fund Ownership
The persistence of Manager performance 38
The Bottom Line 53
Chapter 4: Beyond the Stars 55
Suggestions for Investment Selection Criteria
The Cost of Investing 58
Identifying Risk 64
Assessing the Investment Environment 73
The Bottom Line 76
Chapter 5: The Landscape Has Changed 79
The Proliferation of the ETF
The ETF: What Is It? 80
A Brief History 83
The Use of ETFs in a Portfolio 86
The Bottom Line 94
Chapter 6: Challenging Convention 97
An Introduction to Asset Rotation
A Time-Tested Approach 106
The 2000s 108
The 1990s 110
The 1980s 112
The 1970s 113
The 1960s 114
The 1950s 115
The 1940s 117
The Great Depression 118
From the Great Depression to Today 119
The Bottom Line 121
Chapter 7: Building a Better Mousetrap 123
Advanced Asset Rotation
Building a Better Mousetrap 124
The 1990s 134
The 2000s 136
From 2010 to 2012 138
23 Years: 1999–2012 140
Going Toe to Toe with the Best 141
The Bottom Line 143
Chapter 8: Choose Your Own Adventure 147
Building Your Own Asset Rotation Portfolio
Choose Your Own Adventure 148
Additional Factors to Consider: Eligible Risk Assets 149
Additional Factors to Consider: Eligible Flight to
Safety/Fixed-Income Assets 159
Additional Factors to Consider: Criteria for Investment
Selection 163
Creating a Scoring System 165
Required Due Diligence 167
The Bottom Line 168
Chapter 9: The Anatomy of Change 171
Setting Appropriate Expectations
Benchmarking Success 172
The Four Seasons 175
When Equity Markets Rise 176
When Equity Markets Fall 177
When Equity Markets Move Sideways 180
When Equity Markets Move Sideways with Volatility 183
The Bottom Line 186
Chapter 10: Letting Go of Your Crutch 189
Integrating Asset Rotation into Your
Overall Approach
Citius, Altius, Fortius 190
Asset Rotation as a Core Approach 191
Baby Steps 195
Supplementing Either Equities or Fixed Income 195
Adopting a Core/Satellite Approach 198
The Bottom Line 200
Chapter 11: The Road Ahead 203
Real-World Solutions for a Changing Landscape
The Bottom Line 205
About the Author 207
Index 209
