Between theory and practice: Why allocation to equities, anticyclical action, and asymmetric rules are crucial for optimal asset allocation
Publikation
vom 03. März 2026
How can investors apply rational, evidence-based principles to portfolio management?
Using the example of the perfect-foresight investor “Kassiopeia,” the authors of this paper identify three guiding principles for investment decisions: maintain a meaningful allocation to equities, act anticyclically by increasing equity exposure in falling markets, and apply asymmetric rules that sustain higher equity allocations during recoveries than during downturns.
The study also demonstrates how these principles can be implemented through practical strategies such as Constant Mix, CPPI, Value Averaging, and CAPE-based approaches.
Read the paper now:
DE Version
EN Version
