Antti Ilmanen shares key insights from his latest book Investing Amid Low Expected Returns: Making the Most When Markets Offer the Least.
The book delivers a timeless - and timely - treatment of strategic investment processes in times of low expected returns. It explains how the decades-long fall in required returns in all major asset classes has given great tailwinds until now but promises headwinds – slow pain or fast pain – for the future. It further discusses common investor responses to this low expected return challenge. After reviewing the bleak outlook, Antti provides some constructive answers. He first summarizes the key building blocks to long-run returns – major asset class premia, illiquidity premia, style premia, alpha – as well as efficient ways of putting the pieces together into a portfolio. Throughout he highlights the importance of good investment practices, such as patience and humility.
For further information on the book, including an excerpt and reviews by major investors and media, see www.aqr.com/serenity.