Subtitled “A modern guide to alternative investments and the future of diversification”, this book by Savant Wealth Management CIO Phil Huber warns about the pending disappointment in returns from the traditional 60/40 portfolio, and offers suggestions about how to do better. The book shares an outlook from Cliff Asness of AQR for a 1.4% real return from the blended portfolio over the medium term. As sad as this sounds, it’s much more optimistic than projections from GMO’s Jeremy Grantham. Either way, high starting valuations correlate with low future returns, and the future looks a bit bleak. Phil introduces the concepts around alternative investments generally, and “liquid alternatives” specifically, to help total returns without layering on too much extra volatility. Asness is one of my favorite financial writers, and you can check out his research starting here. I bought Phil’s book The Allocator’s Edge here. Please sign up for email notifications about new blog posts or podcasts below. Follow me on Twitter and Linkedin.