Success in a Low-Return World [electronic resource] : Using Risk Management and Behavioral Finance to Achieve Market Outperformance /
Oyster, Michael J.author.
Following the Great Financial Crisis, the S&P 500 advanced more than 17 percent annualized from February 2009 through June 2018. At this pace, a buy-and-hold investor in the stock market would see their money double in 5 years and more than triple in 7 years. This performance has lulled many investors into thinking that such above-average returns will be with us into perpetuity. Unfortunately, this may not be the case. Far more likely, the return an investor may receive from the stock market will be slightly better than half the long-term average, about 5% to 7%. Most investment portfolios hold a greater allocation to stocks than any other class of investment asset. Massive amounts of wealth were created from the bull market since early 2009 providing institutions and individuals with a rising tide that lifted their portfolios above their goals without much effort. The environment of the future stands to be far less accommodating, so finding suitable investments (other than U.S. stocks) that can achieve the necessary returns (or make up the shortfall) will be a critical component of achieving goals in years to come. This book will explore those solutions.
1. The Future Isn’t What it Used to Be -- 2. An Obsolete Fundamental Philosophy -- 3. As a Group, Professional Investors Are the Market -- 4. The Specifics of Market Efficiency -- 5. Fund Manager Fees -- 6. To Err Is To Be Human. To Make a Behavioral Error Is To Be a Human Investor -- 7. How Regulations Impact Investment Managers -- 8. Performance Doesn’t Tell the Whole Story -- 9. Intuition -- 10. Focus on Asset Allocation -- 11. Indexing -- 12. Active Share and Private Equity -- 13. Momentum -- 14. Smart Beta -- 15. Risk Management -- 16. Buy-Write -- 17. Put Selling -- 18. The Options Income Index -- 19. Portable Alpha -- 20. Epilogue.
Following the Great Financial Crisis, the S&P 500 advanced more than 17 percent annualized from February 2009 through June 2018. At this pace, a buy-and-hold investor in the stock market would see their money double in 5 years and more than triple in 7 years. This performance has lulled many investors into thinking that such above-average returns will be with us into perpetuity. Unfortunately, this may not be the case. Far more likely, the return an investor may receive from the stock market will be slightly better than half the long-term average, about 5% to 7%. Most investment portfolios hold a greater allocation to stocks than any other class of investment asset. Massive amounts of wealth were created from the bull market since early 2009 providing institutions and individuals with a rising tide that lifted their portfolios above their goals without much effort. The environment of the future stands to be far less accommodating, so finding suitable investments (other than U.S. stocks) that can achieve the necessary returns (or make up the shortfall) will be a critical component of achieving goals in years to come. This book will explore those solutions.
Finance.
Investment banking.
Securities.
Risk management.
Popular Science in Finance.
Investments and Securities.
Risk Management.