You can achieve consistently higher returns from your investments. This book is about
the best way to accomplish that goal: effective asset allocation. The author provides 25
years of historical performance data to prove that his strategies work. It's not enough to
rely on some investment managers one-size-fits-all software to allocate your precious
capital: you need to understand the process, and take control. In Understanding Asset
Allocation, economist, investment expert, and hedge fund manager Victor Canto shows you
exactly how to do that. Canto introduces a flexible, intuitive, easy-to-use approach to
asset allocation that leverages powerful business cycle information and investment
vehicles most investors ignore. Canto reveals what you can and cant learn from historical
data; how to find and focus on sectors that offer exceptional opportunity; and how to
manage risk far more effectively. Whether you manage your own investments or rely on an
advisor, Understanding Asset Allocation will help you optimize all your asset allocation
decisions and maximize the returns they deliver.
Table of Contents
Introduction: You Can Do Better
1: In Search of the Upside
2: The Case for Cyclical Asset Allocation
3: Thinking in Cycles
4: Tax Tips
5: Linking Up
6: To Start, a Benchmark
7: Taking It to the Tilt
8: The Cyclical Asset Allocation Strategy's Versatility
9:Active versus Passive Management
10: Location, Location, Location?
11: Eye on Elasticity
12: Keeping the Wheels on the Hedge-Fund ATV
13: Market Timing or Value Timing?
14: Every Strategy Has Its Day
15: Putting It All Together: Value Timing
Endnotes
Bibliography
Glossary
Features
The new, definitive bible on effective diversification strategies for your investments.
Looks beyond the quantitative techniques used by financial planners to explain verbally
the best portfolio allocation strategies.
Shows the right times to choose passive vs. active investments; value vs. growth stocks;
and large caps vs. small caps.
Foreword by Larry Kudlow, former Presidential Economic Advisor, a syndicated columnist,
and the host of CNBCs Kudlow and Company.
Author
Victor Canto, Ph.D., is founder of La Jolla Economics, an economics research and
consulting firm based in La Jolla, California. He formerly served as chief investment
officer of Calport Asset Management and president of A.B. Laffer, V. A. Canto and
Associates.
Dr. Canto taught finance and business economics at the University of Southern California
(USC) from 1977 to 1985 and has served as visiting professor at both the Universidad
Central del Este, Dominican Republic, and the University of California at Los Angeles
(UCLA).
He has authored, edited, or co-edited several books, including the landmark Foundations of
Supply-Side Economics (Academic Press, 1983), as well as Monetary Policy, Taxation, and
International Investment Strategy (Quorum Books, 1990); Supply-Side Portfolio Strategies
(Quorum Books, 1988); and Currency Substitution: Theory and Evidence from Latin America
(Springer, 1987). His work has appeared in the Wall Street Journal, Investors Business
Daily, and many leading economic journals, including Economic Inquiry, Journal of
Macroeconomics, and the Journal of International Money and Finance.
336 pages
