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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (45053)	11/8/2005 3:32:09 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

I take back whatever I might have said in the past about you being risk averse. that's OK--you already took it back 10 months ago: "I take it all back, you might not be risk averse enough. -g-" Message 21036579 of course, it is meaningless to say somebody is not risk averse because they own some Brazilian bonds, without knowing what percentage of their portfolio is in that investment or what else they own and in what percentages. i think you would enjoy The Intelligent Asset Allocator. it goes into some of the mathematics behind asset allocation, and explains why asset classes that might seem risky by themselves can actually improve portfolio efficiency in combination with other asset classes. NB. the author of this book told me only 2% of the population can understand the math in it, which i considered doubtful, but he assured me it is so. for this reason he wrote a dumbed-down version about the same themes in a book called The Four Pillars of Investing. but i think you should be able to read the first book. i believe if you read this book (The Intelligent Asset Allocator), you would not be so dismissive of somebody's risk aversion based on their holding a Brazilian bond. re: Triumph of the Optimists, it is probably not what you think. the title notwithstanding, it is not really an "antidote" to doom and gloom books. more like a very well-researched reference book. a variety of financial observers, ranging from the author of the above books (Bernstein) to Victor Niederhoffer, consider it a must-have reference. the example of wage indexing to inflation makes sense to me. i'm not sure why you think that contrasts with what i said. noticed that the list price on that book is $132....pretty funny you reference it in a post about inflation. i think $130 is pretty cheap for certain information. i have gladly paid much more for information that has turned out to be profitable. this isn't really a general-consumption book. it is priced more like an academic textbook.