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Alternative Market Briefing

‘All financial models come to a point where they become absurd’ – Book Review

Monday, June 21, 2010

From Kirsten Bischoff, Opalesque New York:

It is unusual for the authors of a book to include in their preface a statement like the following “If history is to be a teacher, we know that the future will provide additional information where many of the thoughts and questions within this book will be challenged as well as proven incorrect”. But to Thomas Schneeweis, Garry Crowder, and Hossein Kaszemi, authors of the newly published “The New Science of Asset Allocation: Risk Management in a Multi-Asset World,” risk management includes questioning and challenging all aspects of the models and beliefs that exist in the financial world – including the ones they put forth in their book.

“We started working on this before the crisis became a crisis. And the point we want to get across is that all models – like any good ideas – come to a point where they become absurd. Because they have been taken beyond their intended use,” Crowder explained to Opalesque.

With spare yet very targeted points made in end-of-chapter reviews, coupled with chapter end notes (which read as interesting and notable asides of insight whispered to a chosen few during a larger, more complex lecture), it is easy to imagine well worn copies of this guide, swollen with post it notes on the shelves of its target audience. The depth and breadth of what the a......................

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