Description
Book SynopsisGenerate solid, long-term profits with a portfolio allocated for your investing needs Asset allocation is the key to investing performance. Unfortunately, no single approach works perfectlyâdeveloping the right balance requires a clear-eyed look at the many models available to you, various investing methodologies, and your or your clientâs level of risk tolerance. And thatâs where this important guide comes in.
Written by a leading allocation expert from T. Rowe Price,
Beyond Diversification provides the knowledge, insights, and approaches you need to make the best allocation decisions for your goals. This deep dive into the howâs and whyâs of asset allocation is organized by the three decisive components of a successfully allocated portfolio:
- Return Forecasting discusses the desired return investors seek.
- Risk Forecasting covers the level of risk investors are prepared to assume to achieve that return.
- Por
Table of Contents
Foreword by Rob Sharps
Head of Investments & Group CIO, T. Rowe Price
PART ONE
RETURN FORECASTING
1 Equilibrium and Something About
Quack Remedies Sold on the Internet
2 Valuation and Something About Kool-Aid
3 Shorter-Term Valuation Signals and
Something About Coffee and Egg Yolks
4 Shorter-Term Macro Signals and
Something About Driving a Truck
5 Momentum and Something About Horoscopes
6 Thoughts on Return Forecasting and
Something About the Feelings of Electrons
PART TWO
RISK FORECASTING
7 Risk-Based Investing and Something About Sailboats
8 Longer-Term Risk Forecasting and
Something About Dilequant
9 Correlations and Something About a Freezer and an Oven
10 Correlation Forecasts, Tail Risks, and Something About a Rug
11 Fat Tails and Something About the Number of Particles
in the Universe
PART THREE
PORTFOLIO CONSTRUCTION
12 Asset Classes Versus Risk Factors and
Something About Dr. Strange
13 Stocks Versus Bonds and
Something About Precision Weapons
14 Single-Period Portfolio Optimization and
Something About Controlled Substances
15 Private Assets and Something About Ostriches
16 Active Versus Passive and Something About the “Pharma Bro”
17 Sample Portfolios and Something About Gunslingers
Conclusion
Afterword
Acknowledgments
References and Bibliography
Index
