Overview
- Illustrates some reasons why active managers have underperformed
- Showcases how spreading assets among a variety of different, uncorrelated asset classes can lower risk portfolio wide
- Shines a light on passive investing and smart beta to provide for outperformance
- Explains how and why the volatility risk premium (VRP) is perhaps the most significant, untapped resource available to investors today
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Table of contents (20 chapters)
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Front Matter
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Challenges in Investing
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Front Matter
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Keywords
About this book
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.Authors and Affiliations
About the author
Michael J. Oyster, CFA, CAIA is an investment strategist, researcher and creator of the Options Income Index. He began his professional investment career in 1994 with options advisory firm Schaeffer’s Investment Research. As Schaeffer’s senior quantitative analyst, he conducted detailed analysis of options and volatility metrics while managing product offerings including an S&P 500 Index options spread strategy.
Upon joining Fund Evaluation Group, LLC (FEG) in 1999, Michael began researching traditional, hedge fund and options-based investment strategies as well as conducting and publishing independent research. As FEG’s Chief Investment Strategist, he served as a thought leader and frequent presenter on markets and the economy. His first book, Mission Possible, was published in 2005, and he was twice commissioned by the Chicago Board Options Exchange (Cboe) to conduct research on and provide summary analysis regarding suites of their proprietaryoptions indexes. He serves as a board member on the Freestore Foodbank Foundation and on the Lincoln W. Pavey Educational Foundation.
Bibliographic Information
Book Title: Success in a Low-Return World
Book Subtitle: Using Risk Management and Behavioral Finance to Achieve Market Outperformance
Authors: Michael J. Oyster
DOI: https://doi.org/10.1007/978-3-319-99855-8
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2018
Hardcover ISBN: 978-3-319-99854-1Published: 27 November 2018
Softcover ISBN: 978-3-030-40469-7Published: 22 February 2020
eBook ISBN: 978-3-319-99855-8Published: 19 November 2018
Edition Number: 1
Number of Pages: XXI, 269
Number of Illustrations: 28 b/w illustrations
Topics: Popular Science in Finance, Investments and Securities, Risk Management