Asset Allocation 5E (PB): Balancing Financial Risk, Fifth Edition

The Definitive Guide to Strategic Asset Allocation Uniting theory and practice--the art and science of asset allocation Investors long to beat the market, and money managers accept that as their mandate. The sad reality is that most money managers underperform the market, and individual investors do even worse. Investors also face emotional challenges. The irrational exuberance of the 1990s, for instance, can as easily derail a sensible investment strategy as the market panic accompanying the Global Financial Crisis. Since Roger Gibson wrote the first edition of this book over 25 years ago, his multiple-asset class investment approach has given investors a disciplined strategy for mitigating risks and realizing their financial goals through widely varying market environments. Grounded in the principles of modern portfolio theory, this fifth edition of his investing classic explains how and why asset allocation works. Gibson demonstrates how adding new asset classes to a portfolio improves its risk-adjusted returns and how strategic asset allocation uses, rather than fights, the forces of the capital markets to achieve financial success. New topics in this edition include: The success of multiple-asset-class investing during the stock market's "lost decade" Methods for forecasting long-term asset class returns and the limitations of prediction The dangers of market timing and the challenges involved in tactical asset allocation strategies--with insights from the field of behavioral finance Observations from the Global SIDONI Financial Crisis of 2008 and what it means for the multiple-asset-class investor With more than three decades of experience managing clients' portfolios and expectations, Gibson underscores the importance of identifying and working through the emotional and psychological traps that impede investment success. Join the quarter-century trend of Asset Allocation providing investors with a sound approach to financial well-being.

About the Author

Roger Gibson, Charted Financial Analyst (CFA) and Certified Financial Planner (CFP) is President of Gibson Capital Management, Ltd. located in Pittsburgh, Pennsylvania. The firm is a Registered Investment Adviser providing money management services for high net worth individuals and institutional clients nationwide. Gibson is internationally recognized as an expert in asset allocation and investment portfolio design. He is a frequent speaker at national educational conferences sponsored by such organizations as the American Law Institute-American Bar Association, The American Institute of Certified Public Accountants, The International Association for Financial Planning, the Institute of Certified Financial Planners, and the National Endowment for Financial Education. He also serves on the Advisory Board and is a regular columnist on asset allocation for the Journal of Retirement Planning and is a member of the Editorial Advisory Board of the Journal of Financial Planning. He is frequently interviewed by financial publications, including The Wall Street Journal, Forbes, Money, Fortune, The New York Times, and U.S. News and World Report.