{"product_id":"value-averaging-isbn-9780470049778","title":"Value Averaging","description":"Michael Edleson first introduced his concept of value averaging to the world in an article written in 1988. He then wrote a book entitled \u003ci\u003eValue Averaging\u003c\/i\u003e in 1993, which has been nearly impossible to find—until now. With the reintroduction of \u003ci\u003eValue Averaging\u003c\/i\u003e, you now have access to a strategy that can help you accumulate wealth, increase your investment returns, and achieve your financial goals. \u003cp\u003eForeword by \u003ci\u003eWilliam J. Bernstein\u003c\/i\u003e ix\u003c\/p\u003e \u003cp\u003ePreface to the 2006 Edition xiii\u003c\/p\u003e \u003cp\u003ePreface to the 1993 Edition xix\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Market Risk, Timing, and Formula Strategies 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk and Market Returns 3\u003c\/p\u003e \u003cp\u003eMarket Returns over Time 3\u003c\/p\u003e \u003cp\u003eDistribution of Market Returns 9\u003c\/p\u003e \u003cp\u003eRisk and Expected Return 13\u003c\/p\u003e \u003cp\u003eMarket Timing and Formula Strategies 20\u003c\/p\u003e \u003cp\u003eTiming the Market 20\u003c\/p\u003e \u003cp\u003eAutomatic Timing with Formula Strategies 21\u003c\/p\u003e \u003cp\u003eEndnotes 23\u003c\/p\u003e \u003cp\u003e2006 Note 24\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Dollar Cost Averaging Revisited 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDollar Cost Averaging: An Example 26\u003c\/p\u003e \u003cp\u003eShort-term Performance 28\u003c\/p\u003e \u003cp\u003eOver One-Year Periods 30\u003c\/p\u003e \u003cp\u003eOver Five-Year Periods 32\u003c\/p\u003e \u003cp\u003eLong-term Problems with Dollar Cost Averaging 34\u003c\/p\u003e \u003cp\u003eGrowth Equalization 35\u003c\/p\u003e \u003cp\u003eSummary 36\u003c\/p\u003e \u003cp\u003eEndnotes 37\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Value Averaging 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValue Averaging: An Introduction 39\u003c\/p\u003e \u003cp\u003eShort-term Performance 43\u003c\/p\u003e \u003cp\u003eLong-term Performance and Value Averaging 47\u003c\/p\u003e \u003cp\u003eLinear, or Fixed-Dollar, Strategies 47\u003c\/p\u003e \u003cp\u003eAdjusting Strategies for Growth 51\u003c\/p\u003e \u003cp\u003eSummary 53\u003c\/p\u003e \u003cp\u003eEndnotes 54\u003c\/p\u003e \u003cp\u003e2006 Notes 55\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Investment Goals with Dollar Cost Averaging 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 57\u003c\/p\u003e \u003cp\u003eLump-Sum Investments 57\u003c\/p\u003e \u003cp\u003eUsing the Formula 59\u003c\/p\u003e \u003cp\u003eAnnuities: Periodic Investments 60\u003c\/p\u003e \u003cp\u003eDollar Cost Averaging and Annuities 63\u003c\/p\u003e \u003cp\u003eReadjusting the Investment Plan 63\u003c\/p\u003e \u003cp\u003eThe Readjustment Process 64\u003c\/p\u003e \u003cp\u003eFlexibility 66\u003c\/p\u003e \u003cp\u003eDown-Shifting Investment Risk 69\u003c\/p\u003e \u003cp\u003eGrowth-adjusted Dollar Cost Averaging 71\u003c\/p\u003e \u003cp\u003eExact Formula 72\u003c\/p\u003e \u003cp\u003eApproximate Formula 74\u003c\/p\u003e \u003cp\u003eReadjusting the DCA Plan 75\u003c\/p\u003e \u003cp\u003eSummary 80\u003c\/p\u003e \u003cp\u003eEndnotes 80\u003c\/p\u003e \u003cp\u003eAppendix to Chapter 4: Constructing a DCA Readjustment Spreadsheet 83\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Establishing the Value Path 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValue Averaging Value Paths 87\u003c\/p\u003e \u003cp\u003eThe Value Path Formula 88\u003c\/p\u003e \u003cp\u003eFlexible Variations on the Value Path Formula 89\u003c\/p\u003e \u003cp\u003eReadjusting the VA Plan 92\u003c\/p\u003e \u003cp\u003eA Cautionary Note 93\u003c\/p\u003e \u003cp\u003eAn Alternate Method 93\u003c\/p\u003e \u003cp\u003eSummary 94\u003c\/p\u003e \u003cp\u003eEndnotes 95\u003c\/p\u003e \u003cp\u003eAppendix to Chapter 5: Constructing a VA Readjustment Spreadsheet 97\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Avoiding Taxes and Transaction Costs 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTax Considerations with Value Averaging 101\u003c\/p\u003e \u003cp\u003eThe Advantage of Deferred Gains 101\u003c\/p\u003e \u003cp\u003eDeferring Capital Gains Taxes: An Example 102\u003c\/p\u003e \u003cp\u003eA Compromise: No-Sell Value Averaging 107\u003c\/p\u003e \u003cp\u003eReducing Transaction Costs 111\u003c\/p\u003e \u003cp\u003eLimiting Taxes 111\u003c\/p\u003e \u003cp\u003eLimiting Costs 112\u003c\/p\u003e \u003cp\u003eSummary 113\u003c\/p\u003e \u003cp\u003eEndnotes 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Playing Simulation Games 117\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Simulations? 117\u003c\/p\u003e \u003cp\u003eWhat and How? 118\u003c\/p\u003e \u003cp\u003eParameters 118\u003c\/p\u003e \u003cp\u003eExpected Return 119\u003c\/p\u003e \u003cp\u003eExpected Variability 120\u003c\/p\u003e \u003cp\u003eRandomness 120\u003c\/p\u003e \u003cp\u003eConstructing the Simulation 121\u003c\/p\u003e \u003cp\u003eAn Example 122\u003c\/p\u003e \u003cp\u003eEndnotes 126\u003c\/p\u003e \u003cp\u003eAppendix to Chapter 7: Constructing a Simulation 129\u003c\/p\u003e \u003cp\u003e2006 Note 131\u003c\/p\u003e \u003cp\u003eEndnotes to Appendix to Chapter 7 133\u003c\/p\u003e \u003cp\u003e2006 Note 134\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Comparing the Strategies 135\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFive-year Simulation Results 135\u003c\/p\u003e \u003cp\u003eUsing Growth Adjustments 139\u003c\/p\u003e \u003cp\u003eNo-Sell Variation 142\u003c\/p\u003e \u003cp\u003eVolatility 143\u003c\/p\u003e \u003cp\u003eTwenty-year Simulation Results 145\u003c\/p\u003e \u003cp\u003eSummary 146\u003c\/p\u003e \u003cp\u003eEndnotes 147\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Profiting from Overreaction 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTiring of a Random Walk 149\u003c\/p\u003e \u003cp\u003eMean Reversion and Overreaction 150\u003c\/p\u003e \u003cp\u003eA Brief Look at the Data 151\u003c\/p\u003e \u003cp\u003eWhy Does This Matter? 160\u003c\/p\u003e \u003cp\u003eTiming 161\u003c\/p\u003e \u003cp\u003eEndnotes 164\u003c\/p\u003e \u003cp\u003e2006 Note 167\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Details: Getting Started 169\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUsing Mutual Funds 169\u003c\/p\u003e \u003cp\u003eThe Fund versus Stock Choice 169\u003c\/p\u003e \u003cp\u003eIndex Funds 171\u003c\/p\u003e \u003cp\u003eInformation on Specific Funds 172\u003c\/p\u003e \u003cp\u003eWorking Out the Details 175\u003c\/p\u003e \u003cp\u003eUsing a Side Fund 176\u003c\/p\u003e \u003cp\u003eOperating Within a Retirement Account 177\u003c\/p\u003e \u003cp\u003eEstablishing a Value Path 178\u003c\/p\u003e \u003cp\u003e2006 Note 180\u003c\/p\u003e \u003cp\u003eSetting Up a VA Value Path: An Example 181\u003c\/p\u003e \u003cp\u003eOther Important Considerations 184\u003c\/p\u003e \u003cp\u003eUsing Guidelines and Limits 185\u003c\/p\u003e \u003cp\u003eNotes for Financial Planners 186\u003c\/p\u003e \u003cp\u003eAdvanced Methods 187\u003c\/p\u003e \u003cp\u003eSummary 189\u003c\/p\u003e \u003cp\u003eEndnotes 189\u003c\/p\u003e \u003cp\u003e2006 Note 191\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Examples: Strategies at Work 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Goal and Investment Environment 194\u003c\/p\u003e \u003cp\u003eChoosing an Investment 194\u003c\/p\u003e \u003cp\u003eSetting the Goal (Dealing with Inflation) 197\u003c\/p\u003e \u003cp\u003eHow Much Should He Invest? 199\u003c\/p\u003e \u003cp\u003eInvestment Return \u0026amp; Taxes 200\u003c\/p\u003e \u003cp\u003eExpected Return 200\u003c\/p\u003e \u003cp\u003eTaxes 200\u003c\/p\u003e \u003cp\u003eImplementing Dollar Cost Averaging 202\u003c\/p\u003e \u003cp\u003e1981: Setting Up DCA 203\u003c\/p\u003e \u003cp\u003e1982–1983 Investment Results 205\u003c\/p\u003e \u003cp\u003e1983: Reassessment and Readjustment 205\u003c\/p\u003e \u003cp\u003eThe 1985 Readjustment 211\u003c\/p\u003e \u003cp\u003eAnd So On and So On 212\u003c\/p\u003e \u003cp\u003eWrapping It Up: 1991 Results 214\u003c\/p\u003e \u003cp\u003eImplementing Value Averaging 215\u003c\/p\u003e \u003cp\u003eEstablishing the Value Path 215\u003c\/p\u003e \u003cp\u003e1983: Readjusting the VA Plan 217\u003c\/p\u003e \u003cp\u003eFuture VA Readjustments 219\u003c\/p\u003e \u003cp\u003eVA Investments 220\u003c\/p\u003e \u003cp\u003eSummary 225\u003c\/p\u003e \u003cp\u003eKey Formulas 226\u003c\/p\u003e \u003cp\u003eEndnotes 227\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 A Final Word 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIndex 231\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eMICHAEL E. EDLESON\u003c\/b\u003e is a Managing Director of Morgan Stanley and oversees the firm's equity risk globally. Prior to that, he was Chief Economist of NASDAQ and a finance professor at Harvard Business School. Edleson earned his PhD at MIT. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eIncludes spreadsheets on a companion Web site: www.wiley.com\/go\/valueaveraging\u003c\/b\u003e   \t \u003c\/p\u003e\u003cp\u003e\u003cb\u003e\"Since its first printing in 1991, the cachet of \u003ci\u003eValue Averaging\u003c\/i\u003e has steadily grown to cult classic status.\"\u003c\/b\u003e\u003cbr\u003e —\u003ci\u003eFrom the Foreword by William J. Bernstein\u003c\/i\u003e  \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePRAISE FOR VALUE AVERAGING\u003c\/b\u003e  \u003c\/p\u003e\u003cp\u003e\"Dollar cost averaging is making a comeback, and Mike Edleson's value averaging approach is dollar cost averaging on steroids. A must-read for serious investors willing to adhere to the principles found in these pages.\"\u003cbr\u003e \u003cb\u003e—William G. Christie,\u003c\/b\u003e Frances Hampton Currey Professor of Finance and Professor of Law, Owen Graduate School of Management, Vanderbilt University \u003c\/p\u003e\u003cp\u003e\"Dr. Edleson's book is truly a classic that needs to be perpetuated. I have spent a significant chunk of my career trying to debunk value averaging, but with no success. I'm a believer!\"\u003cbr\u003e \u003cb\u003e—Paul S. Marshall, PhD,\u003c\/b\u003e Professor of Finance, Widener University \u003c\/p\u003e\u003cp\u003e\u003cb\u003eFROM THE FIRST EDITION\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"Today's best way to invest.\"\u003cbr\u003e \u003cb\u003e—\u003ci\u003eMoney\u003c\/i\u003e magazine\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"Value averaging takes dollar cost averaging one step further. Besides buying low, you sell shares when the markets soar.\"\u003cbr\u003e \u003cb\u003e—\u003ci\u003eThe New York Times\u003c\/i\u003e\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eMichael Edleson first introduced his concept of value averaging to the world in an article written in 1988. To satisfy investor interest, he wrote a book entitled \u003ci\u003eValue Averaging\u003c\/i\u003e, which further detailed this method. Following the publication of the last edition of this highly sought-after book in 1993, it has been nearly impossible to find—until now. With the reintroduction of \u003ci\u003eValue Averaging\u003c\/i\u003e, you now have access to Edleson's original work on a strategy that can help you accumulate wealth, increase your investment returns, and achieve your financial goals.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990444687589,"sku":"NP9780470049778","price":26.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470049778.jpg?v=1761787855","url":"https:\/\/k12savings.com\/es\/products\/value-averaging-isbn-9780470049778","provider":"K12savings","version":"1.0","type":"link"}