Book Review: The Behavioral Portfolio

The Behavioral Portfolio by Phillip Toews

Summary – The Behavioral Portfolio was written for financial advisors, but would also be useful for engaged individual investors.  It covers a lot of ground.  The biggest takeaway is that investors should be prepared for much worse than they probably are.  We tend to base what could happen on what has happened in the fairly recent past, but this is not representative of everything that could happen.  Even going back multiple generations only shows what did happen, not what could have happened.  Toews posits that investors discount the Great Depression as something that could never happen again, but really much worse could happen.   Investors should be prepared mentally for a worst-case outcome and should also have their portfolio prepared to sustain them even in a very bad market.

Keep reading here: Book Review - The Behavioral Portfolio by Phillip Toews.pdf