We are familiar with the theory of diversification-asset allocation, but in a volatile market environment, the practice is very different. This book summarizes the most important findings from research conducted over the past half-century on topics such as investing during bull and bear market cycles, asset allocation, and index funds. After providing an in-depth analysis of investing in stocks and going on to explain two active asset allocation strategies, we begin by taking a critical look at diversification and asset allocation.
