Asset Allocation: Balancing Financial Risk

Covers portfolio management, allocation decisions, client involvement, capital market investment alternatives, diversification, and money management

Asset Allocation Balancing Financial Risk Third Edition Roger C. Gibson

Winner – Dow Jones Portfolio Management Award

Professional Praise for Roger Gibson’s Classic High-Return, Low-Risk Investing Classic ...

"Not long ago most families invested little in stocks, even though they have provided superior returns in the long run. Recently, many of these families have plunged significant portions of their savings into narrow sectors of the market. Roger Gibson presents individual investors (and their investment advisors) with a balanced, professional view of the investment process which will much better serve an individual’s or family’s investment needs."—-Harry M. Markowitz, The "Father" of Modern Portfolio Theory, 1990 Nobel Prize Winner, Economic Sciences

"[Gibson’s book’] should be of enormous benefit to the investor seeking the proper decision-making process. I congratulate [him] for treating the asset allocation subject in such depth and bringing this issue—which is the critical investment issue for all investors—to the forefront. It is the best overall piece of work I’ve seen." —-Gary P. Brinson, CFA, President and Managing Partner, Brinson Partners, Inc. Past Chairman, The Institute of Chartered Financial Analysts

"The author balances a solid, understandable, and logical grasp of investment knowledge with an obvious input of practical experience. If all investment advisors would read and understand this book, clients would be far better off." --Darwin M. Bayston, CFA, President, Bayston Capital Management, Inc. Past President and Chief Executive Officer, The Association for Investment Management Research

Asset Allocation Balancing Financial Risk Third Edition Roger C. Gibson

"Asset allocation empowers the individual investor..."-—Roger C. Gibson
As financial commentators fill the airwaves with warnings and advice, and coworkers gather around computer screens to track hot stocks, investors find it increasingly difficult to stick with proven, orderly investment strategies. But in the updated third edition of his classic Asset Allocation, Roger Gibson reminds us that choosing a sensible, proven asset allocation strategy—concerned more with the optimal mix of investment classes than with today’s hot stock picks—is exactly what investors must do to remain sane and successful...And then he shows us how to do it.
Asset Allocation dispenses with luck, market timing, and other "Buy low, sell high" sleights of hand to outline sensible decisions that all investors can make on their own. Less concerned with how investments perform individually than how they perform as a group, it explains how to assemble a long-term portfolio that will actually outperform its parts—while minimizing overall risks—no matter what the market environment.
This all-in-one template for successful long-term investing includes: An easy-to-follow, risk-adjusted model for striking the best portfolio balance between equity and fixed-income securities Rewards of Multiple-Asset-Class Investing—a new chapter that proves why, over time, diversification is still the only sensible alternative Managing Client Expectations—Guidelines to help clients ignore short-term fears—and hold to long-term investment strategies Classic lessons of modern portfolio theory placed into the framework of today’s tumultuous marketplace Performance tables, charts, figures, and more—completely updated from the best-selling second edition
Overriding principles of successful and low-pressure investing are relatively few, and easy to understand. What becomes difficult is to stick to these principles, remind oneself that both bull and bear markets are historically inevitable, and design a long-term portfolio strategy that—once the day traders and market timers have pulled out to tally their defeats—provides day-to-day peace of mind and lifetime financial security.
Asset Allocation learns from history instead of ignoring it. This updated third edition remains today’s most valuable resource for understanding and applying historically tested asset allocation principles, and designing an investment strategy that shifts the focus from short-term tips and blips to long-term needs and results.

About the Author Roger Gibson, CFA, CFP, is a nationally recognized expert in asset allocations and investment portfolio design. The president of Gibson Capital Management, a leading provider of money management services for high net worth individuals, he was named by both Money and Worth as one of America’s top financial advisors. Gibson is a member of the editorial board of the Journal of Financial Planning and is frequently interviewed by publications including The Wall Street Journal, Forbes, Money, Fortune, The New York Times, and U.S. News and World Report. He is also codirector and founder of the Center for Fiduciary Studies, a research and training organization that operates in association with the Katz Graduate School of Business at the University of Pittsburgh.