Investing Amid Low Expected Returns: Making the Most When Markets Offer the Least

I had high expectations for this after reading "Expected Returns", and impressively Antti has managed to exceed them. For me this is without a doubt the best Finance/Investing book I have read. The book is primarily geared for financial professionals/practitioners however there is an enormous amount of wisdom that I believe even retail investors can also largely benefit from as well. If you are looking for a book that will tell you "buy these 5 ETFs" at the end of the book, this is not it. Instead this book provides the knowledge and framework required to carefully examine historical returns, muster your own investing convictions and stick with them. Turns out Antti's own convictions, which he shares at the beginning and throughout the chapters, are very sensible and backed by thoughtful analysis of both theory and evidence.Highly recommend for anyone serious about long-term "evidence-based" investing. If you can, I would read "Expected Returns" first, but it's not required.

A lot of math for pretty straightforward solutions. I’m not sure this book is for the average investor but the one more math inclined. The author went through all the math that showed at the end we should be patient, expect lower returns, diversify, and be disciplined. Because of this, I didn’t feel like I got much new from the book. Some of the writing helped with some explanations but that wasn’t consistent throughout the book. My take on the investing industry is to stay away from high fees, focus on passive investing, stay long and be educated. If you’re not educated, people will have no problems taking your hard earned money. I did hold out hope for risk parity investing or all weather investing, but this seems to be equally fraught with setting up the different risks. One thing to think about is some sort of asymmetrical investment that does incredibly well if things go very bad like a pandemic or high inflammation. This will help offset some of the bad times. The average fund manager is not smart enough to do this for you so you need to do on your own.

Ilmanen's latest is the natural place to go after his previous great work, Expected Returns (2011). Either is an invaluable resource for investors of all stripes, but I recommend reading both, and Investing Amid Low Expected Returns ought to be required reading for pension plan trustees and administrators everywhere.His new book will thoroughly explore how one can derive expected return premia for all asset classes, including how one might practically put that knowledge to use, all the while keeping you grounded with a healthy dose of realism.It's the thoroughly researched, practical, and no nonsense delivery of information that makes this a serious work with true value for readers. Tempered and well informed advice is what serious readers expect. It delivers exactly that.

I wish the author would look more deeply into tail risk strategies with options (derivatives). The example used for backtests (page 212-14) are to simple to fully grasp a real tail strategy by successful firms. I do not know if the author realizes that tail strategy are far more complex than shown in the book. This does not seem fair to those firms.

its complete a new book, and doens't look like a used one. Well maintained and worth reading!