Foreword xii

Preface xvii

Introduction: The Above-Average Opportunity xxi

Chapter 1: The Buy-and-Hold Connection: Investing Fundamentals, Courtesy of the American Homeowner, the American Dream–or Reality? 1

Chapter 2: Leaping the Transaction-Cost Hurdle: Sometimes It’s Easy, Other Times It’s Not 19

Chapter 3: Dressing Appropriately for the Stock Market: The Potential Payoffs of a Switching Strategy 31

Chapter 4: Catch Elasticity If You Can: An Introduction to Industry Behavior 47

Chapter 5: Putting High-Beta to Work: Industry-Based Portfolio Strategies 67

Chapter 6: California Is a Country: An Introduction to the Location Effect 83

Chapter 7: …And France Is a State: How to Invest Internationally in the Age of Globalization 99

Chapter 8: Pipelines to Our Investment Returns: How We Get What We Want, in the Amount We Want, and When We Want It 113

Chapter 9: Who Are You? Investor Profiles and the Case for Asset Allocation 131

Chapter 10: Your Benchmark Portfolio. . .and Beyond 145

Chapter 11: Turning Smoke into Signals: How to Make the Most Out of Price Data 157

Chapter 12: Making Hay While the Sun Shines: The Case for Predicting, Forecasting, and Timing 173

Chapter 13: The Fight Is On: How to Invest Properly Relative to Regulations, Inflation, and Taxation 195

Chapter 14: Ending the Never-Ending Debate: Active vs. Passive Investing and Why You Can Take Both Sides 217

Chapter 15: A Rational Walk Down Wall Street: Darting Between Passive and Active When the Odds Are in Your Favor 233

Chapter 16: Alpha Bets: The Case for Hedge Funds and a Greek Letter You’ll Want in Your Portfolio 247

Chapter 17: Tilting Toward Success: A Step-by-Step Guide to Above-Average Asset Allocation 265

Index 291