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- Wiley
More About This Title Asset Allocation Essentials: Simple Steps to Winning Portfolios
- English
English
"Thomsett brings the all important concept of asset allocation into clear focus and puts it in the context of the contemporary investment world. I believe everyone - professional or individual investor - can learn something by taking the time to read this new guide"—Blaine Maxfield, SVP, SunGard Online Investment Systems
Investors and advisors alike have learned first hand the critical role proper asset allocation plays in every portfolio. Boom and bust cycles of the market, corporate scandals, and the passage of ERISA, continue to reinforce the need to develop intelligent and innovative strategies for the long-term.
Now, best-selling author and respected asset allocation expert Michael Thomsett's compact new work provides some simple yet powerful steps for building consistently winning portfolios. Thomsett's focus is on the essential factors needed for constructing solid, asset-balanced portfolios, including.
Proper management of risk through diversification - the foundation of any successful asset allocation programThe various types of risk involved with asset allocationHow to develop a highly personalized program that can be adapted for any investment scenarioCommon misperceptions surrounding asset allocation - and the core ingredients needed to create a high-performance portfolioAsset Allocation Essentials provides a fresh approach to a concept begun many years ago. Written in non-intimidating language, it's a great read for both time-crunched advisors - and clients who need a better understanding of the value proper asset allocation plays in building safe, profitable portfolios over time.
- English
English
Foreword by Blaine Maxfield SVP, Sungard Online Investment Systems 11
Introduction Why Allocate? 15
Chapter 1. The Importance of Diversification 19
Forms of Diversification 19
Pitfalls of Diversification 24
Chapter 2. Asset Allocation Risks 31
When Diversification Is Excessive 31
Market Changes 34
Anticipating Change 35
Using Asset Allocation to Protect Your Position 36
Investment Volatility Risk 38
Fundamental Volatility 43
Asset Allocation in the Post-Enron Age 44
Chapter 3. The Personalized Program 47
Identifying Specific Goals and Needs 50
Allocation of Available Resources 54
Matching Resources with Goals 56
How Personal Situations Evolve Over Time 59
Investment Needs Versus Risk Tolerance 61
Risk Tolerance and How It Changes Over Time 64
Tailoring Your Individual Strategy 66
Chapter 4. Misconceptions About Asset Allocation 69
Looking for the Magic Bullet 69
Personal Financial Planning 71
Allocation as a Key to Effective Planning 72
Creating the Winning Portfolio 73
Chapter 5. Review Your Knowledge 75
Resource Guide 85
Recommended Reading 87
Important Web Sites 89
Publications of Interest 91
About the Author 97