Asset Allocation For All Markets (eBook)

Suppose you are like many investors, then you have lived
through at least one financial crisis. I lived through the 2000-2002 stock market downturn as Director of Asset Allocation, responsible for the asset allocation advice of 6,000 registered representatives.

In the 2008-2009 downturn, I was a co-portfolio manager
managing $30 billion in asset allocation fund assets. As a
professional investor, the lessons I learned were that I owed it to my clients to do a better job protecting assets from loss. It wasn’t acceptable as a fiduciary to lose 15-45%, while stocks lost 60-75%.

When I started creating an alternative approach to asset
allocation, I learned that it’s imperative to protect against 15% losses or more. I knew that hedging against large loss has a more significant upside in the long run. I also learned that a strategy for identifying a period of potential loss could be identified, and an approach to mitigate loss could easily be implemented. In the end, I developed an approach that results in significantly more asset growth than a buy and hold strategy.

It was the two market downturns that got me interested in active asset allocation.

We know asset allocation theory, and reality is much different in a market meltdown.

This book highlights the most critical research tied to investing in up and down market cycles, asset allocation, and investment management over the last 50 years.

We start with a critical look at diversification and asset allocation; we provide an in-depth analysis of investing in stocks, we then provide details on two active asset allocation approaches, make a case for index funds, and then introduce you to a management tool which we’ll use to manage the asset allocation strategy going forward.


By Terry Grennon

Asset Allocation Strategist