Market Sense and Nonsense
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Link
Cost
Paid
Published
2012
Full Name
Market Sense and Nonsense: How the Markets Really Work (and How They Don't)
Market Sense and Nonsense is an indispensable source of real-world market wisdom and investing know-how for investors of every ilk. It is an engaging book that takes aim at the most perniciously pervasive academic precepts, money management canards, market myths, and investor errors. It spans both traditional and alternative investment classes, covering both basic and advanced topics. It reveals the truth about many of the fallacious assumptions, theories, and beliefs at the core of investment theory and practice.
In this book, you'll discover why:
- Expert opinion is NOT more reliable than the proverbial dart-throwing chimp
- The markets are NOT efficient
- Low volatility does NOT necessarily imply low risk, and high volatility does NOT necessarily imply high risk
- Market prices are NOT normally distributed
- Investing in equities when markets are doing well is NOT conducive to achieving above-average returns
- Concentrating on funds with the strongest record of returns is NOT a sound strategy
- Past returns are NOT a reliable indicator of future performance
- A hedge fund portfolio strategy is NOT riskier than a traditional portfolio approach
- VaR does NOT provide a good indication of worst-case risk
- Superior performance does NOT necessarily imply manager skill