Description
Book SynopsisThe current academic and financial planning industry definitions of “risk” are changing quickly, but the notion of what constitutes a risky investment strategy is still stuck in the Dark Ages. Wealth management expert Kenneth Solow takes a fresh look at the investment industry’s reliance on Buy and Hold investing, exposing the flaws and potential dangers of this strategy during long-term bear markets. The fact is, patiently waiting for stocks to deliver historical average returns is not an effective investment strategy.
Solow advocates a different approach called Tactical Asset Allocation, and he offers the reader an unparalleled look into the methods, techniques, and safeguards of active portfolio management. Now in its second edition with updated material and a new chapter, "Buy and Hold is Dead (Again)" remains an invaluable investment guide for our financially challenging times.
Trade Review“Solow’s one-two punch book delivers a compelling account that the old conventional wisdom of buy-and-hold should be a relic of history. The modern understanding of secular stock market cycles drives his compelling knockout that active portfolio management is essential for today’s investor.” --- Ed Easterling, Author, Unexpected Returns: Understanding Secular Stock Market Cycles
“It is perhaps embarrassing that we must turn to books like Solow’s for insights that the CFA curriculum should have been inculcating for two decades. This book not only explains these insights, but translates them into practical policies that investors can utilize to meet their true objectives.” --- H. “Woody” Brock, Ph.D. Founder and President, Strategic Economic Decisions, Inc.
“If the government fails to mop up the recent flood of liquidity, active asset allocation, as Solow advocates, will be required to adjust for a dangerous new inflation environment. This is an excellent book for financial advisors.” --- Steve Leuthold, Founder and Chief Investment Officer, The Leuthold Group
Table of ContentsPart one: buy and hold is dead
Chapter 1: WE’RE ALL IN
Chapter 2: The Risks of Buy and Hold Investing In Bear Markets (or, Why You May Never Be Able To Retire)
Chapter 3: Why The Financial Industry Believes In Buy and Hold Investing
Chapter 4: Hogs, Cobwebs, And Other Imperfect Assumptions
Chapter 5: The Theoretical Case For Active Portfolio Management
Chapter 6: The Trouble With Quant Models
Chapter 7: Compelling Evidence That Active Management Really Works
Part Two: Active Portfolio Management
Chapter 8: Portfolio Strategy In A Post-Lehman World
Chapter 9: Becoming An Investment Expert (or, How To Be Right For The Right Reasons)
Chapter 10: The Incredible, Amazing P/E Ratio
Chapter 11: Developing A Point Of View With Top-Down Analysis
Chapter 12: Bottom-Up Investment Analysis: A Case Study
Chapter 13: The Psychology Of Making Investment Mistakes
Chapter 14: The Tax Tail And The Portfolio Dog
Chapter 15: Decisions, Decisions, Decisions
Chapter 16: Industry Forecast (An Essay)
