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

Investors and their advisors face a dizzying array of options when selecting investments. How to choose the optimal mix of stocks, bonds, real estate, and other assets? This book shows how to construct strategies that are appropriate for each investor.With its detailed analysis, supported by data and anecdotes drawn from investment experience, Guide to Investment Strategy is above all a practical guide. It shows how new insights from behavioral analysis are widely reflected in the actual choices investors make. It also emphasises the importance of basing recommendations for investment strategy on the principles of traditional finance. And it takes into account current research on the goals investors want to achieve and the mistakes they frequently make.Peter Stanyer has written an extremely clear guide to the ins and outs of investment strategy. 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.