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GHAUS asset allocation

Author

Listed:
  • Javier Estrada

    (IESE Business School)

Abstract

Asset allocation is widely viewed as one the most important investment decisions, but there is little consensus on how investors should make this choice. This article proposes a simple and intuitive three-step process, referred to as GHAUS, that accounts for all the relevant variables, including (and with particular emphasis on) the individual’s ability to tolerate losses, that omits the use of black boxes and that any individual can easily implement.

Suggested Citation

  • Javier Estrada, 2016. "GHAUS asset allocation," Journal of Asset Management, Palgrave Macmillan, vol. 17(1), pages 1-9, January.
    • Handle: RePEc:pal:assmgt:v:17:y:2016:i:1:d:10.1057_jam.2015.28
    DOI: 10.1057/jam.2015.28
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    References listed on IDEAS

    as
    1. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    2. Hamish Anderson & Ben Marshall & Jia Miao, 2014. "The Permanent Portfolio," Applied Financial Economics, Taylor & Francis Journals, vol. 24(16), pages 1083-1089, August.
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