| |
| |
Foreword | |
| |
| |
Preface | |
| |
| |
| |
Understanding Asset Allocation | |
| |
| |
| |
Essentials of Asset Allocation | |
| |
| |
Overview | |
| |
| |
Meanings of Asset Allocation | |
| |
| |
Foundations of Asset Allocation | |
| |
| |
The Risks and Rewards of Asset Allocation | |
| |
| |
Principal-Protection Assets and Principal-Growth Assets | |
| |
| |
The Effects of Inflation on Purchasing Power | |
| |
| |
| |
The Asset-Allocation Process | |
| |
| |
Overview | |
| |
| |
Matching Asset Classes with Wealth Levels and Income Needs | |
| |
| |
Types of Asset Allocation | |
| |
| |
Intersections of Asset Allocation with Other Disciplines | |
| |
| |
| |
The Mechanics of Asset Allocation | |
| |
| |
| |
Asset-Allocation Tools and Concepts | |
| |
| |
Overview | |
| |
| |
Modern Portfolio Theory/Efficient Market Theory | |
| |
| |
Asset and Portfolio Returns | |
| |
| |
Asset and Portfolio Risk | |
| |
| |
Risk and Return | |
| |
| |
Assets' Returns and Correlations Caveats | |
| |
| |
Asset-Allocation Optimization Models | |
| |
| |
Asset-Allocation Optimization Software | |
| |
| |
| |
Asset-Allocation Rebalancing | |
| |
| |
Overview | |
| |
| |
Rebalancing Principles | |
| |
| |
Advantages and Disadvantages of Rebalancing | |
| |
| |
Origins and Implications of Asset-Allocation Overweighting | |
| |
| |
Scope of Rebalancing | |
| |
| |
Special Considerations Involving Concentrated Positions | |
| |
| |
Rebalancing Methods | |
| |
| |
Asset-Allocation Drift-No Rebalancing | |
| |
| |
Rebalancing Sensitivity Analysis | |
| |
| |
Critical Success Factors in Rebalancing | |
| |
| |
| |
Underpinnings of Asset Allocation | |
| |
| |
| |
Individual Investor Behavior | |
| |
| |
Overview | |
| |
| |
Factors Affecting Individual Investors' Asset-Allocation Decisions | |
| |
| |
The Evolution of Individual Investors' Asset-Allocation Activity | |
| |
| |
Primary Determinants of Individual Investors' Asset Allocation | |
| |
| |
Strategic and Tactical Principles | |
| |
| |
Individual Investor Behavioral Characteristics | |
| |
| |
Financial Lessons from Market History | |
| |
| |
Insights from Behavioral Finance | |
| |
| |
| |
Asset Class Characteristics | |
| |
| |
| |
Distinguishing Qualities of Asset Classes | |
| |
| |
Overview | |
| |
| |
Asset Supercategories | |
| |
| |
Evaluating Asset Classes | |
| |
| |
Participants within Asset Classes | |
| |
| |
Asset Classes and Subasset Classes | |
| |
| |
Asset Class Descriptions | |
| |
| |
Asset Class Weightings and Uses | |
| |
| |
| |
Analyzing Assets' Rates of Return | |
| |
| |
Overview | |
| |
| |
Organization of Returns Data | |
| |
| |
Assets' Annual Rates of Return by Groups of Years | |
| |
| |
Assets' Annual Rates of Return by Individual Years | |
| |
| |
Assets' Annual Rates of Return by Economic Environment | |
| |
| |
Rotating Returns Leadership Among Asset Classes | |
| |
| |
Equities Industry Sectors by Individual Years | |
| |
| |
Leading Companies by Equity Market Capitalization | |
| |
| |
Leading U.S. Companies' Rates of Return by Individual Years | |
| |
| |
| |
Financial Markets Analysis and Investment Insights | |
| |
| |
| |
Constructing an Analytical Framework | |
| |
| |
Overview | |
| |
| |
Societal Analysis | |
| |
| |
Market-Cycle Analysis | |
| |
| |
Scenario Analysis | |
| |
| |
Investor Satisfaction Analysis | |
| |
| |
Strategy Implementation Analysis | |
| |
| |
Comparative Financial Analysis | |
| |
| |
Financial Market Climate Analysis | |
| |
| |
Phases and Cycles in Asset Allocation | |
| |
| |
| |
Tactics and Strategies | |
| |
| |
| |
Asset-Allocation Matrices and Worksheets | |
| |
| |
Overview | |
| |
| |
Worksheets in the Asset-Allocation Process | |
| |
| |
Asset-Allocation Worksheets in Context | |
| |
| |
Drawbacks of Asset-Allocation Worksheets | |
| |
| |
Asset-Allocation Guidelines | |
| |
| |
Investors' Asset-Allocation Cycles | |
| |
| |
Sequencing of Market Outcomes | |
| |
| |
Asset-Allocation Matrices | |
| |
| |
Investor Profile Worksheet | |
| |
| |
Investment Outlook Worksheet | |
| |
| |
Investment Universe Worksheet | |
| |
| |
Risk Mitigation Matrices | |
| |
| |
Index | |