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| Preface | |
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| Acknowledgments | |
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| About the Author | |
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| About the Book | |
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| Disclaimers | |
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| Asset Allocation | |
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| Ingredients of Asset Allocation | |
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| Lessons of the Recent Downturn | |
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| So Are Bonds the Place to Invest? | |
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| So What Happens When the Economy Turns Up? | |
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| Some Necessary Tools for Analysis | |
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| Appendix: Description of the Statistical Tools | |
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| Long-Run Returns on Stocks and Bonds | |
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| Stocks and Bonds Since 1951 | |
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| How Much More Attractive Are Stocks than Bone | |
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| Real Returns | |
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| Reconsidering Bond Returns | |
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| Reconsidering Stock Returns | |
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| Alternative Estimates of Long-Run Stock Returns | |
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| Upper and Lower Bounds for Equity Returns | |
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| Appendix: Alternative Estimates of Stock Returns | |
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| Small-Cap Stocks | |
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| What Do We Mean by Small-Cap Stocks? | |
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| Relative Performance of Large-Cap and Small-Cap Stocks-Russell Series | |
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| Relative Performance of Large-Cap and Small-Cap Stocks-SBBI Series | |
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| Relative Performance of Large-Cap and Small-Cap Stocks-Broader Analysis | |
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| Large-Cap and Small-Cap Stocks in a Portfolio Context | |
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| Summary-Key Features of Small-Cap Stocks | |
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| Value and Growth Investing | |
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| Description of the Russell 1000 Indexes | |
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| Relative Performance of Growth and Value Indexes | |
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| Value and Growth Indexes for Earlier Periods | |
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| Relative Performance of Small-Cap Growth and Value Stocks | |
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| Portfolios with Growth and Value | |
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| Summary-Key Features of Growth and Value Stocks | |
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| Foreign Stocks | |
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| Returns on Foreign and U.S. Stocks | |
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| Currency Capital Gains and Foreign Stock Returns | |
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| Diversification Benefits of Foreign Stock Investing | |
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| Are There Shortcuts to Owning Foreign Stocks? | |
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| Summary-Key Features of Foreign Stocks | |
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| Emerging Markets | |
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| What Is An Emerging Market? | |
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| Emerging Stock Market Indexes | |
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| Emerging Stock Market Returns | |
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| Risks of Investing in Emerging Stock Markets | |
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| Emerging Market Bonds-A Brief History | |
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| Returns on Emerging Market Bonds | |
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| Summary-Key Features of Emerging Market Stocks and Bonds | |
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| Bonds | |
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| Treasury Bonds | |
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| The Wider U.S. Bond Market | |
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| Returns on U.S. Bonds | |
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| Bond Markets Outside the United States | |
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| Summary-Key Features of Bonds | |
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| Strategic Asset Allocation | |
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| Expanding the Portfolio to Include Other Bonds and Stocks | |
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| Expanding the Portfolio to Include Foreign Stocks | |
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| The Dirty Secret of Optimization | |
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| Alternative Approaches to Optimization | |
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| Estimating Portfolio Returns-the Premium Method | |
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| Portfolios in Practice-Example of MarketWatch.com' Lazy Portfolios | |
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| Beyond the Traditional Efficient Frontier | |
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| Hedge Funds | |
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| Investment Strategies | |
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| Hedge Fund Returns | |
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| Hedge Fund Biases | |
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| Performance Across Managers | |
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| Fund of Funds | |
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| Hedge Funds in a Portfolio | |
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| Summary-Key Features of Hedge Funds | |
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| Venture Capital and Private Equity | |
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| Common Features of Venture Capital and Buyout Funds | |
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| Venture Capital | |
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| Returns on Venture Capital | |
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| Buyout Funds | |
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| Returns on Buyout Funds | |
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| Key Features of Private Equity | |
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| Real Assets-Real Estate | |
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| Real Estate Investment Trusts | |
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| Direct Ownership of Real Estate | |
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| Home Ownership | |
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| Concluding Remarks | |
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| Real Assets-Commodities | |
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| Sources of Return on Commodity Futures | |
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| Returns on Commodity Futures | |
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| Performance in a Portfolio | |
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| Does Gold Belong in the Portfolio? | |
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| Active Investment in Commodities-Managed Futures | |
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| Summary-Key Features of Commodity Investments | |
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| Asset Allocation with Alternative Investments | |
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| Diversifying into Real Estate-Alternatives for Ordinary Investors | |
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| Expanding the Menu of Alternative Assets | |
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| High Net Worth (HNW) Portfolios | |
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| Ultra HNW Portfolios | |
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| Lessons about Alternatives from the Yale Endowment | |
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| Lessons about Alternative Investments Learned in the Financial Crisis | |
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| Verdict on Alternative Investments | |
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| Investing and Spending by Foundations | |
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| Spending Rules | |
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| Estimating Future Bond and Stock Returns | |
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| Volatility and Uncertainty | |
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| Portfolios of Stocks and Bonds | |
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| Description of the Spending Plan | |
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| Using Historical Returns Since 1951 to Set Spending Rules | |
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| Effect of Lower Stock Returns on Spending Rules | |
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| Effects of Different Stock/Bond Allocations | |
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| Concluding Comments | |
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| Investing and Spending in Retirement | |
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| Longevity | |
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| Spending Rules for Retirement | |
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| Portfolios of Stocks and Bonds | |
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| Baseline Case: Can Two Live More Cheaply Than One? | |
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| Effects of Bequests and Variable Spending Rules | |
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| How Can I Turn a Defined Contribution Plan into Defined Benefit Plan? | |
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| Concluding Comments-Postpone Retirement? | |
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| The Discipline of Asset Allocation-Rebalancing | |
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| Rebalancing Defined | |
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| Rebalancing When Times Are Good | |
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| Rebalancing When Times Are Bad | |
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| References | |
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| Index | |