PT  - JOURNAL ARTICLE
AU  - Rodney N. Sullivan
TI  - Using Investment Consumption Value to Select Asset Classes
AID  - 10.3905/jpm.2008.701619
DP  - 2008 Jan 31
TA  - The Journal of Portfolio Management
PG  - 79--90
VI  - 34
IP  - 2
4099  - https://pm-research.com/content/34/2/79.short
4100  - https://pm-research.com/content/34/2/79.full
AB  - The asset allocation decision is arguably the most important decision in the investment process. It involves allocating an investor's portfolio among a set of desirable asset classes, but the investor must first define the asset classes to consider. The concept of investment-consumption value may help investors decide on including non-traditional asset classes such as hedge funds or commodities. The decision framework is grounded in the financial economics of the consumption CAPM and state/preference models. From this perspective, commodities are one example to consider as an investable asset class.TOPICS: Portfolio construction, exchanges/markets/clearinghouses, financial crises and financial market history