Beyond Diversification: What Every Investor Needs to Know About Asset Allocation

Foreword by Rob Sharps
Head of Investments & Group CIO, T. Rowe Price 

PART ONE
RETURN FORECASTING
1 Equilibrium and Something About
Quack Remedies Sold on the Internet 
2 Valuation and Something About Kool-Aid 
3 Shorter-Term Valuation Signals and
Something About Coffee and Egg Yolks 
4 Shorter-Term Macro Signals and
Something About Driving a Truck 
5 Momentum and Something About Horoscopes 
6 Thoughts on Return Forecasting and
Something About the Feelings of Electrons 

PART TWO
RISK FORECASTING
7 Risk-Based Investing and Something About Sailboats 
8 Longer-Term Risk Forecasting and
Something About Dilequant
9 Correlations and Something About a Freezer and an Oven 
10 Correlation Forecasts, Tail Risks, and Something About a Rug 
11 Fat Tails and Something About the Number of Particles
in the Universe 

PART THREE
PORTFOLIO CONSTRUCTION
12 Asset Classes Versus Risk Factors and
Something About Dr. Strange 
13 Stocks Versus Bonds and
Something About Precision Weapons 
14 Single-Period Portfolio Optimization and
Something About Controlled Substances 
15 Private Assets and Something About Ostriches 
16 Active Versus Passive and Something About the “Pharma Bro” 
17 Sample Portfolios and Something About Gunslingers 

Conclusion 
Afterword 
Acknowledgments 
References and Bibliography 
Index