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Zvi Bodie

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245:"Unless you have the heart of a high stakes gambler, get out of stocks now and put your retirement money in inflation protected government bonds and similar instruments. These investments are immune to the kind of calamity Wall Street experienced last year, and they are guaranteed to keep pace with inflation, a potential problem in the future." 233:
In 2003, he spoke again, about investing too heavily in the stock market, saying "people who have been following conventional investment advice are probably taking more risk than they should and don't even know it. They've been told not to worry about the stock market going down because in the
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In 2007 the Retirement Income Industry Association gave Bodie their Lifetime Achievement Award for applied research, and in 2019 he received the Plan Sponsor Council of America's Lifetime Achievement Award. He also won the Financial Analysts Journal Graham and Dodd Scroll in 1985 and 1996.
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Bodie, an expert on retirement and financial economics, is a long-time advocate of diversity and "safety-first investing." In 1995 he offered a warning about the risks of investing heavily in stocks, in a journal article:
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Insuring: paying someone else to pay you if something bad happens, while keeping the upside in good times; an example is a put option on the stock market, a contract that ensures you can sell stocks at a prespecified
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Bodies' five-step plan consists of Risk identification, Risk assessment, Selection of risk-management techniques, Implementation, and Review; the five steps are then followed by a four-step processof:
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His investment strategy consists of a five-step process to analyze and evaluate what kinds of risks one faces, and how to determine the best way to implement an investment plan.
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Bodie has authored and co-authored multiple books and textbooks, and his written works have focused on pension finance and investment strategy. Some of his work is listed below.
801: 284:: taking less risk and giving up upside; an example is buying I savings bonds (inflation-linked bonds that protect investor purchasing power) to offset the risk of stocks. 677: 260:
to protect their investments, and plan for unforeseen risks. Bodie prescribes a diversified portfolio that includes products with guaranteed returns such as
1052: 859: 1285: 776: 1290: 496: 119:(born April 27, 1943) is an American economist, author and professor. He was the Norman and Adele Barron Professor of Management at 1255: 560: 1310: 1280: 172: 78: 1275: 210:, and served as an advisory member to the World Bank Project on Old Age Security. He was also a consultant to the State of 1300: 652: 1265: 1028: 995: 238: 531: 1305: 909: 884: 404: 203: 69: 1194: 827: 589: 184: 124: 639:"Old Age Income Support in the 21st Century: The World Bank's Perspective on Pension Systems and Reform" 415: 1077: 275: 1240: 199: 249:
Bodie added "he follow his own advice and did not lose a penny in the recent market meltdown."
1270: 443: 780: 710:"Conversations with E21: Zvi Bodie on How to Make Sense of Markets in the Time of Coronavirus" 295:
Bodie has promoted his system of investment and retirement planning in numerous interviews on
1023:. National Bureau of Economic Research project report. Chicago: University of Chicago Press. 990:. National Bureau of Economic Research project report. Chicago: University of Chicago Press. 1295: 380:, (with Dennis McLeavy and Laurence B. Siegel), Research Foundation of CFA Institute, 2009. 148: 8: 176: 156: 1210: 564: 291:
Saving for emergencies: keeping an emergency fund of liquid savings for the unexpected.
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long-run, stocks are going to beat everything else. That's a fundamental fallacy."
180: 120: 1206: 1167: 1128: 1089: 802:"Sell Your Stocks, MIT Sloan Professor Urges Small Investors Saving for Retirement" 750: 192: 60: 1093: 968: 614: 281: 261: 257: 104: 1249: 1218: 1179: 1140: 1101: 921: 839: 762: 392:, (with Michael J. Clowes), Financial Times/Prentice Hall, 1st edition, 2003. 339:, (with John B. Shoven and David A. Wise), University of Chicago Press, 1987. 144: 50: 1132: 1038: 1005: 754: 678:"Boston University's Zvi Bodie to receive PSCA's Lifetime Achievement Award" 386:, (with Robert Merton and David Cleeton), Prentice Hall, 2nd edition, 2008. 358:, (with Alex Kane and Alan Marcus), McGraw-Hill/Irwind, 11th edition, 2019. 1171: 1116: 738: 330: 138: 1155: 885:"Economist Zvi Bodie debunks standard investment advice - Sep. 16, 2009" 777:"BW Online | July 28, 2003 | Online Extra: Sleep Soundly without Stocks" 466: 188: 390:
Worry-Free Investing: A Safe Approach to Achieving Your Lifetime Goals
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and traditional retirement plans that assure a minimum interest rate.
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is the market leader and is used in the certification programs of the
402:"Do a firm's equity returns reflect the risk of its pension plan?," 366:, (with Alex Kane and Alan Marcus), McGraw-Hill, 11th edition, 2012. 860:"As the markets swing, should you be freaking out about your 401K?" 128: 1078:"Do a firm's equity returns reflect the risk of its pension plan?" 532:"Retirement Savings Hit Hard by COVID-19? Here's What to Do Next" 152: 593: 211: 1261:
Massachusetts Institute of Technology School of Science alumni
944: 168: 73: 64: 256:, he offered advice on how people can use the principles of 159:. He continues to do consulting work and media interviews. 1019:
Bodie, Zvi; Shoven, John B.; Wise, David A., eds. (1987).
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Bodie, Zvi; Shoven, John B.; Wise, David A., eds. (1988).
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and David A. Wise), University of Chicago Press, 1988.
278:: owning diversified risky assets to avoid undue risk. 1076:
Jin, Li; Merton, Robert C.; Bodie, Zvi (2006-07-01).
413:"Personal Investing: Advice, Theory, and Evidence," 438:, Volume 36, Issue 3, with Victor I. Rosansky, 1980. 374:, (with Rachelle Taqqu), Jon Wiley & Sons, 2011. 372:
Risk Less and Prosper: Your Guide to Safer Investing
323:, (with E.P. Davis), Edward Elgar Publishing, 2000. 1117:"Personal Investing: Advice, Theory, and Evidence" 1247: 975:. Two volume set. Edward Elgar Publishing. 2000. 1018: 985: 420:Volume 53, Issue 6, with Dwight B. Crane, 1997. 1154:Bodie, Zvi; Rosansky, Victor I. (1980-05-01). 1075: 441:"Common Stocks as a Hedge Against Inflation," 378:The Future of Life Cycle Savings and Investing 1153: 910:"How Much You Need vs. How Much You Can Lose" 1195:"Common Stocks as a Hedge Against Inflation" 555: 553: 551: 343:Financial Aspects of the U.S. Pension System 214:concerning reform of their pension system. 198:He has served on the finance faculty at the 1115:Bodie, Zvi; Crane, Dwight B. (1997-11-01). 162: 1114: 345:, (with John B. Shoven, 3rd edition, 2010. 206:. Bodie was on the editorial board of the 127:for 43 years before retiring in 2015. His 825: 548: 434:"Risk and Return in Commodity Futures," 425:"On the Risk of Stocks in the Long Run," 408:, Volume 81, Issue 1, with Li Jin, 2006. 303:and other media outlets over the years. 221: 208:Journal of Pension Economics and Finance 739:"On the Risk of Stocks in the Long Run" 1286:MIT Sloan School of Management faculty 1248: 1156:"Risk and Return in Commodity Futures" 229:On the Risk of Stocks in the Long Run. 1192: 939: 937: 736: 732: 730: 704: 702: 700: 698: 464: 241:, in a 2009 interview, he advised: 173:Massachusetts Institute of Technology 79:Massachusetts Institute of Technology 969:"The Foundations of Pension Finance" 907: 584: 582: 526: 524: 522: 520: 518: 516: 491: 489: 396: 13: 1211:10.1111/j.1540-6261.1976.tb01899.x 1045: 961: 934: 727: 695: 321:The Foundations of Pension Finance 14: 1322: 1229: 826:Tarquinio, J. Alex (2009-04-01). 645: 579: 513: 486: 1291:21st-century American economists 239:stock market crash of 2007--2008 1256:Harvard Business School faculty 1186: 1147: 1108: 1069: 1012: 979: 908:Geer, Carolyn T. (2012-03-04). 901: 877: 852: 819: 794: 769: 657:Plan Sponsor Council of America 306: 252:Prior to, and during, the 2020 151:. Bodie's work has centered on 1311:American expatriates in Israel 1082:Journal of Financial Economics 670: 631: 607: 458: 405:Journal of Financial Economics 204:MIT Sloan School of Management 70:Hebrew University of Jerusalem 1: 1281:American financial economists 1094:10.1016/j.jfineco.2005.06.005 451: 171:in economics (1975) from the 988:Pensions in the U.S. economy 779:. 2011-06-20. Archived from 615:"Zvi Bodie | TIAA Institute" 592:. 2010-08-18. Archived from 349: 327:Pensions in the U.S. Economy 7: 1276:Corporate finance theorists 1021:Issues in pension economics 828:"A Hedge Against Inflation" 447:, Volume 31, Issue 2, 1976. 429:, Volume 51, Issue 3, 1995. 337:Issues in Pension Economics 10: 1327: 1301:American financial writers 1160:Financial Analysts Journal 1121:Financial Analysts Journal 743:Financial Analysts Journal 682:Pensions & Investments 436:Financial Analysts Journal 427:Financial Analysts Journal 416:Financial Analysts Journal 1266:Boston University faculty 737:Bodie, Zvi (1995-05-01). 468:Hedging against inflation 356:Essentials of Investments 110: 98: 93: 89: 56: 46: 28: 21: 314: 163:Education and background 1306:Brooklyn College alumni 1133:10.2469/faj.v53.n6.2126 755:10.2469/faj.v51.n3.1901 200:Harvard Business School 1199:The Journal of Finance 444:The Journal of Finance 247: 123:, teaching finance at 1172:10.2469/faj.v36.n3.27 619:www.tiaainstitute.org 243: 222:Investment philosophy 806:www.businesswire.com 497:"About - Zvi Brodie" 149:Society of Actuaries 1193:Bodie, Zvi (1976). 914:Wall Street Journal 465:Bodie, Zvi (1975). 384:Financial Economics 157:investment strategy 832:The New York Times 567:on August 18, 2004 1057:www.goodreads.com 536:Boston University 254:COVID-19 pandemic 181:Hebrew University 177:M.A. in economics 142: 121:Boston University 114: 113: 16:American academic 1318: 1241:SSRN Author page 1223: 1222: 1190: 1184: 1183: 1151: 1145: 1144: 1112: 1106: 1105: 1073: 1067: 1066: 1064: 1063: 1049: 1043: 1042: 1016: 1010: 1009: 983: 977: 976: 965: 959: 958: 956: 955: 941: 932: 931: 929: 928: 905: 899: 898: 896: 895: 881: 875: 874: 872: 871: 856: 850: 849: 847: 846: 823: 817: 816: 814: 813: 798: 792: 791: 789: 788: 773: 767: 766: 734: 725: 724: 722: 721: 706: 693: 692: 690: 689: 674: 668: 667: 665: 664: 649: 643: 642: 635: 629: 628: 626: 625: 611: 605: 604: 602: 601: 586: 577: 576: 574: 572: 563:. Archived from 557: 546: 545: 543: 542: 528: 511: 510: 508: 507: 493: 484: 483: 481: 479: 462: 397:Journal articles 262:government bonds 193:Brooklyn College 185:B.A. with Honors 179:(1970) from the 136: 61:Brooklyn College 42: 38: 36: 19: 18: 1326: 1325: 1321: 1320: 1319: 1317: 1316: 1315: 1246: 1245: 1232: 1227: 1226: 1191: 1187: 1152: 1148: 1113: 1109: 1074: 1070: 1061: 1059: 1051: 1050: 1046: 1031: 1017: 1013: 998: 984: 980: 967: 966: 962: 953: 951: 943: 942: 935: 926: 924: 906: 902: 893: 891: 883: 882: 878: 869: 867: 858: 857: 853: 844: 842: 824: 820: 811: 809: 800: 799: 795: 786: 784: 775: 774: 770: 735: 728: 719: 717: 708: 707: 696: 687: 685: 676: 675: 671: 662: 660: 651: 650: 646: 637: 636: 632: 623: 621: 613: 612: 608: 599: 597: 588: 587: 580: 570: 568: 559: 558: 549: 540: 538: 530: 529: 514: 505: 503: 495: 494: 487: 477: 475: 463: 459: 454: 399: 352: 317: 309: 258:risk management 224: 165: 137:(with Kane and 105:Stanley Fischer 100: 94:Academic career 77: 68: 40: 34: 32: 24: 17: 12: 11: 5: 1324: 1314: 1313: 1308: 1303: 1298: 1293: 1288: 1283: 1278: 1273: 1268: 1263: 1258: 1244: 1243: 1238: 1231: 1230:External links 1228: 1225: 1224: 1205:(2): 459–470. 1185: 1146: 1107: 1068: 1044: 1029: 1011: 996: 978: 960: 933: 900: 876: 851: 818: 793: 768: 726: 694: 669: 644: 630: 606: 578: 547: 512: 501:www.amazon.com 485: 456: 455: 453: 450: 449: 448: 439: 431: 430: 422: 421: 410: 409: 398: 395: 394: 393: 387: 381: 375: 369: 367: 360: 359: 351: 348: 347: 346: 340: 334: 331:John B. Shoven 324: 316: 313: 308: 305: 293: 292: 289: 285: 279: 223: 220: 167:Bodie holds a 164: 161: 112: 111: 108: 107: 102: 96: 95: 91: 90: 87: 86: 58: 54: 53: 48: 44: 43: 39:April 27, 1943 30: 26: 25: 22: 15: 9: 6: 4: 3: 2: 1323: 1312: 1309: 1307: 1304: 1302: 1299: 1297: 1294: 1292: 1289: 1287: 1284: 1282: 1279: 1277: 1274: 1272: 1271:Living people 1269: 1267: 1264: 1262: 1259: 1257: 1254: 1253: 1251: 1242: 1239: 1237: 1234: 1233: 1220: 1216: 1212: 1208: 1204: 1200: 1196: 1189: 1181: 1177: 1173: 1169: 1165: 1161: 1157: 1150: 1142: 1138: 1134: 1130: 1126: 1122: 1118: 1111: 1103: 1099: 1095: 1091: 1087: 1083: 1079: 1072: 1058: 1054: 1048: 1040: 1036: 1032: 1030:9780226062846 1026: 1022: 1015: 1007: 1003: 999: 997:9780226062853 993: 989: 982: 974: 970: 964: 950: 946: 940: 938: 923: 919: 915: 911: 904: 890: 889:money.cnn.com 886: 880: 865: 861: 855: 841: 837: 833: 829: 822: 807: 803: 797: 783:on 2011-06-20 782: 778: 772: 764: 760: 756: 752: 748: 744: 740: 733: 731: 715: 711: 705: 703: 701: 699: 683: 679: 673: 658: 654: 648: 640: 634: 620: 616: 610: 596:on 2010-08-18 595: 591: 585: 583: 566: 562: 556: 554: 552: 537: 533: 527: 525: 523: 521: 519: 517: 502: 498: 492: 490: 474: 470: 469: 461: 457: 446: 445: 440: 437: 433: 432: 428: 424: 423: 419: 417: 412: 411: 407: 406: 401: 400: 391: 388: 385: 382: 379: 376: 373: 370: 368: 365: 362: 361: 357: 354: 353: 344: 341: 338: 335: 332: 328: 325: 322: 319: 318: 312: 304: 302: 298: 290: 286: 283: 280: 277: 274: 273: 272: 268: 265: 263: 259: 255: 250: 246: 242: 240: 235: 231: 230: 219: 215: 213: 209: 205: 201: 196: 194: 190: 186: 182: 178: 174: 170: 160: 158: 154: 150: 146: 145:CFA Institute 140: 134: 130: 126: 122: 118: 109: 106: 103: 97: 92: 88: 84: 80: 75: 71: 66: 62: 59: 55: 52: 49: 45: 41:(age 81) 31: 27: 20: 1236:zvibodie.com 1202: 1198: 1188: 1166:(3): 27–39. 1163: 1159: 1149: 1127:(6): 13–23. 1124: 1120: 1110: 1085: 1081: 1071: 1060:. 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Index

U.S.
Brooklyn College
BA
Hebrew University of Jerusalem
MA
Massachusetts Institute of Technology
PhD
Stanley Fischer
Boston University
Questrom
textbook
Marcus
CFA Institute
Society of Actuaries
pension
investment strategy
Ph.D.
Massachusetts Institute of Technology
M.A. in economics
Hebrew University
B.A. with Honors
philosophy
Brooklyn College
Harvard Business School
MIT Sloan School of Management
Israel
stock market crash of 2007--2008
COVID-19 pandemic
risk management
government bonds

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