Review Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies
by MEBANE FABER
The Book, “Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies,” poses a pressing market question: are we missing some pertinent concerns surrounding how much we allocate for assets and when we do allocate them?
Author Mebane Faber takes us into a historical review of the performance record of assets such as bonds, cash, and stocks. The book goes into a discussion of inflation and its effect on a nation’s money. Diversification, which is done through asset combination, is scrutinized. In the context of this literature, simple stock and bond mix is sampled in order to soften the blow of high drawdowns of assets seen as risky.
The discussion encroaches the terrains outside of the stock/bond portfolio that aims at considering a global allocation that also brings real assets to the table. In the material, the author tracks 13 assets and the apparent returns that are rightfully deserved. Popular portfolios are thrown as examples such as the All-Weather portfolio by Ray Dalio and the Endowment portfolio, which was authored by Warren Buffett, and a host of other examples. What was driven here that despite the type of allocation, these receive the same type of exposure?
Readers agree that the book is enjoyable. It is quite a read in that the content and the sampled instances are relatable. The discussion is delivered in such a way that the content doesn’t appear to be overwhelming, let alone, intimidating.
Ultimately, the book, “Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies” is an eye-opener and contributes much to market wisdom.
About the Author
Apart from being an author of 3 books, Mebane Faber is also a creator of a number of white papers, a co-founder and Chief Investment Officer of the Cambria Investment Management.
Table of Contents
About the Author
- Chapter 1- A History of Stocks, Bonds, and Bills
- Chapter 2- The Benchmark Portfolio: 60/40
- Chapter 3- Asset Class Building Blocks
- Chapter 4- The Risk Parity and All Seasons Portfolios
- Chapter 5- The Permanent Portfolio
- Chapter 6- The Global Market Portfolio
- Chapter 7- The Rob Arnott Portfolio
- Chapter 8- The Marc Faber Portfolio
- Chapter 9- The Endowment Portfolio-Swensen, El-Erian, and Ivy
- Chapter 10- The Warren Buffett Asset Allocation Portfolio
- Chapter 11- Comparison of the Strategies
- Chapter 12- Implementation (ETFs, Fees, Taxes, Advisors)
- Chapter 13- Summary
- Appendix A-FAQs
- Appendix B- The Tobias Portfolio
- Appendix C- The Talmud Portfolio
- Appendix D- The Twelve Portfolio
- Appendix E- The William Bernstein Portfolio
- Appendix F- The Larry Swendroe Portfolio