Balanced Asset Allocation How to Profit in Any Economic Climate

The conventional portfolio is prone to frequent and potentially devastating losses because it is NOT balanced to different economic outcomes. In contrast, a truly balanced portfolio can help investors reduce risk and more reliably achieve their objectives. This simple fact would surprise most investors, from beginners to professionals. Investment consultant Alex Shahidi puts his 15 years of experience advising the most sophisticated investors in the world and managing multi-billion dollar portfolios to work in this important resource for investors. You will better understand why nearly every portfolio is poorly balanced and how to view the crucial asset allocation decision from a deeper, more thoughtful perspective. The concepts presented are simple, intuitive and easy to implement for every investor. Author Alex Shahidi will walk you through the logic behind the balanced portfolio framework and provide step-by-step instructions on how to build a truly balanced portfolio. No book has ever been written that discusses asset allocation in this light.

• Provides insights from a top-ranked investment consultant using strategies from the industry’s brightest minds
• Proposes a balanced asset allocation that can achieve stable returns through various economic climates
• Introduces sophisticated concepts in very simple terms

For those who want to better manage their investment portfolio and seek a more advanced approach to building a balanced portfolio, Balanced Asset Allocation: How to Profit in Any Economic Climate provides an in-depth treatment of the topic that can be put to use immediately.

ALEX SHAHIDI is a leading investment consultant managing multi-billion dollar portfolios. He focuses on advising large pension funds, foundations, endowments, and ultra-high-net-worth families, and is responsible for managing over $13 billion in assets. Alex is a Chartered Financial Analyst Charterholder, Certified Investment Management Analyst, and a Certified Financial Planner. Since 2008, he has consistently been recognized as one of the top financial advisors in the country by national publications such as Barron's, Worth, and On Wall Street. His comments about asset allocation have been referenced in the Wall Street Journal, MarketWatch, Money News, and Advisor Perspectives.

Foreword Bill Lee ix

Acknowledgments xi

About the Author xiii

Introduction 1

Chapter 1 The Economic Machine: Why Being Balanced is So Important Today 5

Chapter 2 Your Portfolio is Not Well Balanced 19

Chapter 3 The Fundamental Drivers of Asset Class Returns 29

Chapter 4 Viewing Stocks through a Balanced Portfolio Lens 49

Chapter 5 The High Value of Low-Yielding Treasuries within the Balanced Portfolio Framework 69

Chapter 6 Why TIPS are Critical to Maintaining Balance (Despite Their Low Yield) 89

Chapter 7 Owning Commodities in a Balanced Portfolio 101

Chapter 8 Even More Balance: Introduction to Other Asset Classes 115

Chapter 9 How to Build a Balanced Portfolio: Conceptual Framework 127

Chapter 10 How to Build a Balanced Portfolio: The Step-by-Step Process 143

Chapter 11 The Balanced Portfolio: Historical Returns 155

Chapter 12 Implementation Strategies: Putting Theory into Practice 181

Chapter 13 Conclusion 195

About the Website 197

Index 199

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.