Generation Alt

A fact about the Meltdown of 2008:
While the world was awash in economic chaos over fears entire countries could go under and when the populace panicked because almost every market sector was significantly down, there were investments that finished that terrible year solidly in the black—including some alternative investments.

From volatility to globalization to a record low interest rate environment, alternative investments may have a place in this post-meltdown period.

In Generation Alt: The New Movement in Alternative Investing, Clifford Jack explores the increasing interest and strategic use of alternatives as a way to help manage volatility amid now-commonplace market swings. He demystifies the alternative asset class, identifies several portfolio strategies, tools and techniques while educating the reader in a colorful way.

Generation Alt is for a new era of investors who understand that time is money and that packing up their portfolios and heading for the sidelines to escape volatility is not going to help them achieve their long-term goals. If you’re looking for ways to stay focused on your financial goals in this new economic climate, you’re invited to open this book and join the movement.

List of contents

Foreword   x
Chapter One:  What Goes Up...   1
Chapter Two:  The Modern Portfolio Problem   9
   The Long and Winding Road: Preparing for the Ride    11
   Employers Stall Out: Finding a New Map to Your Financial Future   14
   From the Alt Vault: Valuable Takeaways from Chapter Two   18
Chapter Three:  A Volatile Reality   19
   Motion Sickness: Markets Are Increasingly Cyclical   20
   Investor Shock: When Fear Leads to Missed Opportunities   25
   New Prescription: Rethink Buy-and-Hold   27
   Is It Time to See a Specialist? The Role of Proper Diversification.   28
   Radical Idea: Do Something Different   29
   From the Alt Vault: Valuable Takeaways from Chapter Three   29
Chapter Four:  It’s a Smaller World After All   31
   Booster Shot: Globalization Begins   33
   Immune System Breakdown: Volatility Reaches Fever Pitch   35
   Modern Medicine: Combating Home Country Bias   36
   Second Opinion: The Best Advisors Seek the Counsel of Their Peers   38
   Fatal Mistake: Do Nothing   40
   From the Alt Vault: Valuable Takeaways from Chapter Four   40
Chapter Five:  Disappearing Diversification   43
   Sugary Sweet: Learning Self-Control   45
   Similar Taste: The Rise of Correlation   46
   Proper Diversification: A Well-Balanced Diet   51
   Thirst for Diversification: Develop an All-Weather Strategy   51
   From the Alt Vault: Valuable Takeaways from Chapter Five   53
Chapter Six:  Exploring the Alternative Universe   55
   Flight Plan: Collaborate to Win   56
   Down to Earth: What It Means for the Average Investor   60
   Alternative Investments: No Longer So Alien   62
   From the Alt Vault: Valuable Takeaways from Chapter Six   65
Chapter Seven:  Play the Percentages   67
   Risk Mitigation: Eye on the Ball   68
   Loss Aversion: Play It Safe   69
   Hall of Fame: Unparalleled Returns   71
   From the Alt Vault: Valuable Takeaways from Chapter Seven   75
Chapter Eight:  Beta Blockers   77
   The Prescription: Bringing Balance   78
   Better Beta: Reduce Stress   81
   Clinical Trial: Safe for Public Use?   83
   Risk Parity   86
   From the Alt Vault: Valuable Takeaways from Chapter Eight   87
Chapter Nine:  Think Outside the Style Box   89
   Boxing Out: A Defensive Strategy   90
   Xs and Os: Running a New Play   93
   Driving the Lane: The Importance of
   (Timely and Consistent) Yield   95
   From the Alt Vault: Valuable Takeaways from Chapter Nine   97
Chapter Ten:  The Scouting Report   99
   Due Diligence: A Fundamental Layup   101
   Size and Reach: Is Bigger Better?   102
   Team Performance: Stars vs. Cellars   103
   Preparation: The REIT Way to Do It   103
   Expensive Egos: Managing the Managers   104
   From the Alt Vault: Valuable Takeaways from Chapter Ten   105
Chapter Eleven:  Survival of the Fittest   107
   Hedge Funds: Asset Hunters and Gatherers and More   109
   Alternative Investments: Global Migration Patterns   111
   From the Alt Vault: Valuable Takeaways from Chapter Eleven   113
Chapter Twelve:  Fast and Furious   115
   Post-Modern Portfolios: Revving the Engine   117
   Getting Tactical: Rotate the Tires   118
   Alternative Investments: Riding an Annuity Chassis   120
   Portfolio Optimization: Balancing Risk and Return   122
   Portfolio Overlay: Understanding the Diagnostics    122
   From the Alt Vault: Valuable Takeaways from Chapter Twelve   123
Chapter Thirteen:  How Leverage Works   125
   The Mortgage Industry: Strawberry Fields Forever   127
   130/30 Funds: Short But Growing Longer   128
   Leverage: Note the Danger and Look Down   129
   From the Alt Vault: Valuable Takeaways from Chapter Thirteen   131
Chapter Fourteen:  Over the Hedge   133
   Hedge Funds   135
   Partnerships.   139
   Liquidity and Alternatives   141
   From the Alt Vault: Valuable Takeaways from Chapter Fourteen   143
Chapter Fifteen:  Strategy and Execution   145
   Relative Value   149
   Event-Driven   151
   Equity L/S   152
   Global Macro   153
   Multi-Strategy   155
   From the Alt Vault: Valuable Takeaways from Chapter Fifteen   155
Chapter Sixteen:  Completing the Picture   157
   So What Now?   159
   10 Important Points to Remember   159
Glossary   163
Index   173

About the author

Clifford Jack, Head of Retail, Jackson National Life Insurance Company.
With nearly three decades of experience in the financial field, Clifford Jack, author of Generation Alt: The New Movement in Alternative Investing, currently serves as the head of retail for Jackson. He also takes charge of the company’s corporate growth initiatives. One that he feels especially passionate about is alternatives.

With the blurring of lines between international and domestic markets and world-wide political, social, and economic uncertainty, Jack feels strongly that investors need a strategic approach to investing amid a turbulent global economy. “Empowering investors and their advisors with knowledge about alternatives is the purpose of this book,” says Jack. “I want my readers to understand the risks involved, but also show them the compelling reasons they should consider tapping into the powerful potential of alternatives.”

Jack graduated from San Francisco State University. He resides in Colorado with his family.
Jackson National Life Distributors LLC

Summary

Following the worst global financial crisis, volatility and a low interest rate environment remain major concerns for investors. In Generation Alt: The New Movement in Alternative Investing, Clifford Jack combines the art of analogy and the science of methodology to help investors seek out ideas on building a portfolio. 
 
Generation Alt starts by examining a major issue in the post-crisis investing world.  Here’s the question: Is the traditional 60/40 mix, 60% stocks and 40% bonds, still timely and relevant for today’s investor? This portfolio construct has been an investing tenet for close to half a century, but many of its basic assumptions have been challenged in recent years, especially in the wake of 2008.

Product details

Authors	Clifford Jack
Publisher	Pearson Academic
Languages	English
Product format	Paperback / Softback
Released	30.04.2015
EAN	9780133391909
ISBN	978-0-13-339190-9
No. of pages	192
Weight	270 g
Series	Financial Times; Financial Times
Subject	Guides > Law, job, finance > Money, bank, stock market

Product details

• Authors: Clifford Jack
• Publisher: Pearson Academic
• Languages: English
• Product format: Paperback / Softback
• Released: 30.04.2015
• EAN: 9780133391909
• ISBN: 978-0-13-339190-9
• No. of pages: 192
• Weight: 270 g
• Series: Financial Times; Financial Times
• Subject: Guides > Law, job, finance > Money, bank, stock market