Enhanced Indexing Strategies: Utilizing Futures and Options to Achieve Higher Performance (Wiley Trading)
by: Tristan Yates
Enhanced Indexing Strategies: Utilizing Futures and Options to Achieve Higher Performance (Wiley Trading)
By Tristan Yates
Publisher: Wiley
Number Of Pages: 286
Publication Date: 2008-11-03
ISBN-10 / ASIN: 0470259256
ISBN-13 / EAN: 9780470259252
Product Description:
Leveraged index investments, including index futures, options, and ETFs, are one of the fastest growing products in finance, as both retail and institutional investors are attracted to their long-term returns and capital efficiency. With Enhanced Indexing Strategies, author Tristan Yates reveals how you can create and build high-performance indexing strategies using derivatives that can potentially generate much higher returns than conventional index investing. In addition, Enhanced Indexing Strategies introduces six innovative long-term indexing strategies using futures and options, each with its own advantages and applications.
Summary: Informative but has its downfalls
Rating: 3
Yates put together a wonderful book with lots of research about a topic that many investors often foolishly overlook while seeking out "high gain" opportunities. By investing in indexes that are naturally less risky than individual stocks and sectors, investors are able to profit tremendously by applying leverage while minimizing their risk. The author sets out to lay down the groundwork for numerous strategies that take advantage of high risk-adjusted returns.
While Yates provides plenty of strategies that allow investors to profit from leverage in up markets, there are a few factors that are overlooked which make his strategies less practical for an individual investor and eventually make his book seem like a long and in depth case study. It is interesting to read and understand, but few investors other than high net worth, *extremely* risk tolerant investors could practically benefit from most of the strategies presented. The distinctions between the mildly risky and extremely risky strategies are lightly touched upon leaving a wrong impression for investors looking for high gains.
Overall it is an important book for traders and money managers that have a long time horizon and freedom to take more risks than basic index or fund investing.
Summary: An Intuitive Concept Backed by Theory
Rating: 5
Enhanced Indexing Strategies: Utilizing Futures and Options to Achieve Higher Performance (Wiley Trading)
The author takes a unique strategy with strong intuitive appeal -- indexes reliable produce strong returns in the long-term and can therefore be leveraged with relative safety -- and brings it out of the realm of intuition and into the real world of investing. By providing detailed historical analysis of various leveraging strategies and in-depth discussion of how market conditions will effect the strategies going forward, the book enables the reader to think for him or her self and develop personalized strategies based on book's fundamental insights. I highly recommend the book to anyone who finds the author's basic insights appealing and would like to move from theory to action.
Summary: Great Book! Useful to all investors!
Rating: 5
This is a very well written, informative and easily understandable book. I ordered a number of books to learn more about investing in these challenging times. This book was by far the most useful. The title intimidated me a bit but I decided I would give it a try...and I am very glad I did. I would recommend this book to people of all investing levels. It is easy enough to understand for the beginner and has many advanced strategies that will also benefit someone with much more experience.
This is a great book that has allowed me to reduce my risk while increasing my leverage and potential for returns. The timing of the release of this book could not have been better...Clearly it is better to be more leveraged closer to the bottom of the market than the top. I no longer fear a margin call because I have implemented some of the books strategies to more safely increase leverage using quality underlying investments. Adding leverage to something safer for higher returns makes more sense to me than investing in something riskier. I now have a portfolio with my desired level of volatility and leverage without taking unnecessary (and uncompensated) risk. The book helps quantify the risks of too much leverage. The book also shows ways of combining options to get cost effective downside protection. The book also contains enough historical data to help you make informed investing decisions. Overall, I feel the book gives enough information to effectively use options, LEAPS, and futures for long term profits.
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