A Few Notes on Wave Theory for Alternative Investments
February 21, 2011 - Big Ideas
In his 2010 book Wave Theory for Alternative Investments: Riding the Wave with Hedge Funds, Commodities, and Venture Capital, author Stephen Todd Walker asserts that “dynamic asset allocation (as opposed to static allocation) is imperative… In my view, now is the time that one should be adding alternatives to a well-diversified portfolio. It is time to get out the surfboard. I believe alternatives move in waves, and this next wave will be worth riding. …Investors should consider all asset classes, especially those they do not fully understand, because that is where an investor will likely find the best opportunity going forward. …No one possesses a crystal ball, but it is not impossible to identify a certain trend or wave forming with alternatives.” The book first introduces the author’s Wave Theory of asset class performance and then examines some alternative asset classes. Some notable points from the book regarding dynamic asset class allocation are: Keep Reading