The Economist Guide To Investment Strategy : How to Understand Markets, Risk, Rewards and Behaviour

Supported by numerous charts and detailed analysis, Guide to Investment Strategy outlines how to construct investment strategies appropriate for individual investors.It looks at the risks and opportunities of uncomplicated strategies and it comes with wealth-warnings for those who wish to explore more sophisticated and fashionable investment approaches. It emphasizes the importance of taking into account insights from behavioral analysis as well as the principles of traditional finance. It highlights how habitual patterns of decision-making can lead any of us into costly mistakes, and it stresses how markets are most dangerous when they appear to be most rewarding. The global financial crisis that erupted in 2008 exposed the flaws in many investment strategies. This book explores the controversies that surround the management of wealth and provides guidance on how to construct investment strategies that are appropriate for each investor. With its detailed analysis, supported by data and anecdotes, it is above all a practical guide. It shows how the insights of behavioural analysis are widely reflected in investor behaviour, while emphasising the importance of basing investment strategy on the principles of traditional finance. And it takes into account new research into behavioural and traditional finance which has created new understandings of what investors want to achieve and investors'customary mistakes. Part one considers the basics of investor objectives, behaviour, risk and investment allocation in terms of stocks, bonds and cash. Part two considers the things on which investors, their advisers and investment managers spend most of their time - the choice of money manager, bonds, equities, hedge fund strategies, private equity and real estate. "Supported by detailed analysis, this guide outlines how to construct investment strategies that are appropriate for individual investors. It emphasises the importance of taking insights from behavioural analysis into account as well as the principles of traditional finance, and it explores the latest research, which has created new understandings of what investors want to achieve and investors' customary mistakes."--BOOK JACKET Explores the controversies that surround the management of wealth and provides guidance on how to construct investment strategies that are appropriate for each investor. This book emphasises the importance of basing recommendations for investment strategy on the principles of traditional finance. With detailed analysis supported by data and anecdotes drawn from investment experiences, this practical guide emphasizes the importance of basing recommendations for investment strategy on the principles of traditional finance.