Investment advisors face two challenges. First, the portfolios we offer clients leave investors vulnerable to serious financial events and emotional stress. Second, the way we educate investors about their portfolios is not effective in helping them limit biases.

The Behavioral Portfolio examines the risks of both equity and bond portfolios from a historically comprehensive perspective, in order to show that, based on market history, the current approach could lead to the breakdown of clients' portfolios and our practices. It then develops an all-weather investment approach that embraces optimism and addresses interventions of significant risks.

Once the portfolios are constructed according to these new parameters, portfolio communications shift to proactively prepare investors for upcoming challenges. Instead of following the crowd and retreating from assets in adverse times, investors are trained to understand the markets and think contrary to common sense.

Behavioral portfolio strategies and communications enable investors to enjoy a higher probability of success and greater peace of mind throughout their investment lives.

Pages: 272, Year of Publication: 0715, Dimensions: 15.3x15.3cm