Consider this a bit of a “reality check” to return to logic and caution after more than a decade of boundless investor optimism. Lots of Risk Parity-esque insights. Recommended, but maybe better suited for pros though, as the DIY investor can get the message through Ilmanen’s podcast appearances.
Clear, succinct and authoritative summary of relevant research on behavioral finance and how the principles can be seen among real-world investors. Chapter Seven, about mental accounting and portfolio construction, is a goldmine of insights for RP investors.
One of the first investing books I ever read, the lessons of Roger Gibson’s book have stuck with me ever since. Not necessarily about RP, but related, and a great foundational source about the creation of profitable and resilient portfolios. Highly recommended.
An explanation of Risk Parity that never utters the words “Risk Parity.” A bit dated and a bit too tied to the simplicity aspect of the portfolio, this book nevertheless clearly conveys the principles behind risk-balanced portfolios, even if it departs on some of the details.
Collection of white papers about different aspects of Risk Parity investing in book form. Parts are indeed instructive and interesting, but the book is mistitled. Not really at the “fundamental” level – more like a collection of different advanced topics within Risk Parity.
