Asset allocation involves essential decisions for all investors, whether they are professional or private individuals. But how can investors be sure they make these decisions in an objective manner? While there isn’t a single answer to this question, understanding the history of the financial markets is key, as it allows us to consider both short and long timeframes.
Analysing financial data from nearly a dozen countries going back to the beginnings of industrialisation, the author proposes a cyclical framework for understanding the financial markets: specifically, long cycles of a duration of approximately 50 years and short cycles primarily tied to current events.
The work is divided into three chapters:
- The first chapter deals with long cycles and highlights the behaviour of assets during each phase in line with economic and demographic factors.
- The second chapter reviews short cycles, detailing their recurrent patterns, especially in response to moves by central banks.
- the third chapter proposes asset allocation strategies that would have preserved long-term purchasing power based on the preceding observations.
Éric MIJOT has spent the last 30 years in asset management. In particular, he served as Head of Strategy at Amundi, as well as Director of Equity Research and Strategy and Deputy Director of Equity Investment at Société Générale Asset Management where he sat on the investment committee and asset management steering committee.
A graduate of Montpellier Business School, Éric Mijot sat on the board of the SFAF (French Society of Financial Analysts). He was a member of the advisory committee for fund management at the AMF (France's financial regulator) and a member of the advisory committee of the index provider STOXX. He is a lecturer at Université Paris-Dauphine.