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Broken Pie Chart

5 Ways to Build Your Investment Portfolio to Withstand and Prosper in Risky Markets

By (author) Derek Moore
Format: Hardback
Publisher: Emerald Publishing Limited, Bingley, United Kingdom
Published: 9th Feb 2018
Dimensions: w 152mm h 229mm
ISBN-10: 1787435547
ISBN-13: 9781787435544
Barcode No: 9781787435544
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Synopsis
Investment outcomes and strategies have changed considerably since 2008. Broken Pie Chart demonstrates the failures of classical diversification and asset allocation, pointing out that the backward-looking methods used by traditional financial professionals will not work moving forward. Derek Moore explains why traditional risk-spreading leads to losses during sell-off periods, and contains risks that many investors do not recognize until it is too late. He also reflects on the changes in the financial market since the global financial crisis, and how these changes may affect your asset allocation and risk management decision-making in a landscape of lower rates and higher risks. With this work, readers can take a fresh look at their portfolios by identifying the emerging asset classes that will lead to investment success, using effective financial strategies to enhance their position, and placing smart floors, hedges and buffers to minimize risk.

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Moore, who helps individual investors build portfolios to deal with various market conditions, contends that traditional asset allocations in investing may fail in the future and describes the need for new asset classes to modernize the investment pie chart to withstand risky markets. He explains why bonds' past performance can't predict future results, misunderstandings about target date funds, why diversification fails, the need for strategies that generate returns in sideways and bear markets, the consequences of current economic conditions, the importance of sequence of returns, strategies that can input a hard floor below the market to hedge risk, short volatility as a small piece in new portfolios, synthetic options, and risk-adjusted returns. -- Annotation (c)2018 * (protoview.com) * "While classic asset allocations and portfolio management may prove successful over multiple decades, many investors with shorter windows to build wealth are often left unprotected. Investors fear no more as Derek Moore takes portfolio analysis to a new level and delivers five ways to simplify yet protect your hard-earned investments in risky markets no matter when they occur! A must read for anyone with the desire to create wealth in the financial markets." -- Bennett A. McDowell "Derek Moore's refreshing Broken Pie Chart challenges the common perception of asset allocation. It shows you how to add value to reduce risk and tailor a program to truly diversify your portfolio based on your risk profile rather than on an assumed universal allocation strategy. The concepts introduced in this book are thought-provoking. A must read." -- Michael C. Thomsett "Broken Pie Chart challenges conventional wisdom with persuasive results." -- Jonathan Hoenig "With equity market exuberance firing on all cylinders, Derek Moore offers a much needed reminder that the stock market can have years, or even decades, of stagnant returns. Further, Moore's new book Broken Pie Chart lays out the ground work to comprehending the reality of conventional portfolio allocation and serves up a handful of well-supported ideas on how investors can combat the feast or famine nature of stock market investing." -- Carley Garner "With interest rates at all-time lows and the memory of 2008 fresh in investors minds Broken Pie Chart lays out the case for why the traditional mix of stocks and bonds may not deliver in the coming decades." -- Jay Pestrichelli