In their expanded and updated 2018 edition of "Reducing the Risk of Black Swans: Using the Science of Investing to Capture Returns with Less Volatility," Larry Swedroe, author of the bestselling "The Only Guide" series of investment books, and Kevin Grogan, co-author of "The Only Guide You'll Ever Need for the Right Financial Plan," revisit what it takes to build more efficient portfolios in today's evolving financial landscape. Designed specifically for those seeking to enrich their technical knowledge of recent advancements in the world of evidence-based investing, the revised second edition reexamines and enhances Swedroe and Grogan's roadmap to an investment strategy that can deliver higher returns without increased risk (or the same return with reduced risk). In addition to refreshing the data and returning to the themes that made their original work so influential with experienced investors and practitioners alike, the authors add an entirely new section on alternative investments. In it, Swedroe and Grogan explain how developments in the financial industry have enabled retail investors to access new and unique sources of risk and return previously locked away on the balance sheets of corporate and financial institutions, without the higher costs so prevalent in the past. Because each of the alternative investments they discuss has attractive expected returns that show low to no correlation to the stocks and bonds dominant in traditional portfolios, including an allocation to them can result in superior portfolio efficiency and greater diversification. The way today's investors hold risk is changing, and Swedroe and Grogan bring you an essential resource for making the informed and prudent investment decisions necessary to help secure your financial future. From factor-based investing to newly available alternatives, they an offer in-depth look at portfolio construction ideal for those interested in refining their portfolio. In "Swans," Swedroe and Grogan begin by inviting you to explore improvements in asset pricing models and the academic underpinnings that have led to what we now commonly recognize to be modern financial theory; then, based on an overwhelming amount of hard data and research, incorporate the latest strategies to make their case for reducing the risk of black swans in your portfolio.
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