Market Sense and Nonsense: How the Markets Really Work (and How They Don't) 1st Edition, Kindle Edition
Use the Amazon App to scan ISBNs and compare prices.
Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required. Learn more
Read instantly on your browser with Kindle Cloud Reader.
Using your mobile phone camera - scan the code below and download the Kindle app.
Enter your mobile phone or email address
By pressing "Send link," you agree to Amazon's Conditions of Use.
You consent to receive an automated text message from or on behalf of Amazon about the Kindle App at your mobile number above. Consent is not a condition of any purchase. Message & data rates may apply.
Bestselling author, Jack Schwager, challenges the assumptions at the core of investment theory and practice and exposes common investor mistakes, missteps, myths, and misreads
When it comes to investment models and theories of how markets work, convenience usually trumps reality. The simple fact is that many revered investment theories and market models are flatly wrong—that is, if we insist that they work in the real world. Unfounded assumptions, erroneous theories, unrealistic models, cognitive biases, emotional foibles, and unsubstantiated beliefs all combine to lead investors astray—professionals as well as novices. In this engaging new book, Jack Schwager, bestselling author of Market Wizards and The New Market Wizards, takes aim at the most perniciously pervasive academic precepts, money management canards, market myths and investor errors. Like so many ducks in a shooting gallery, Schwager picks them off, one at a time, revealing the truth about many of the fallacious assumptions, theories, and beliefs at the core of investment theory and practice.
- A compilation of the most insidious, fundamental investment errors the author has observed over his long and distinguished career in the markets
- Brings to light the fallacies underlying many widely held academic precepts, professional money management methodologies, and investment behaviors
- A sobering dose of real-world insight for investment professionals and a highly readable source of information and guidance for general readers interested in investment, trading, and finance
- Spans both traditional and alternative investment classes, covering both basic and advanced topics
- As in his best-selling Market Wizard series, Schwager manages the trick of covering material that is pertinent to professionals, yet writing in a style that is clear and accessible to the layman
The Amazon Book Review
Book recommendations, author interviews, editors' picks, and more. Read it now
From the Author: "(Almost) Everything You Know About Investment Is Wrong"
When it comes to the markets, academics, professionals and novice investors have one thing in common: They all operate on assumptions that fail to hold up in the harsh light of reality. The following are a sampling of observations about how markets really work:
- The market is not always right. The best opportunities arise when the market is most wrong.
- Big price moves begin on fundamentals but end on emotion.
- Past returns are not future returns. Past returns can be very misleading if there are reasons to believe that future market conditions are likely to be significantly different from those that shaped past returns.
- The best-performing past investments often do worse than the worst-performing past investments in the future--and the future after all is where we all have to make our investment decisions.
- The best time to initiate long-term investments in equities is after extended periods of underperformance.
- Faulty risk measurement is worse than no risk measurement at all because it will lull investors into unwarranted complacency.
- Volatility is frequently a poor proxy for risk. Many low volatility investments have high risk, while some high volatility investments have well-controlled risk.
- The real risks are often invisible in the track record.
- High past returns sometimes reflect excessive risk-taking in a favorable market environment rather than manager skill.
- Return alone is a meaningless statistic because return can always be increased by increasing risk. Return/risk should be the primary performance metric.
- Leverage alone tells you nothing about risk. Risk is a function of both the underlying portfolio and leverage. Leveraged portfolios can often be lower risk than unleveraged portfolios--it depends on the assets in the portfolio.
About the Author
JACK D. SCHWAGER is a recognized industry expert on futures and hedge funds and the author of the widely acclaimed Market Wizards and Schwager on Futures book series. He is currently the co-portfolio manager for the ADM Investor Services Diversified Strategies Fund, a portfolio of futures and FX managed accounts. He is also an advisor to Marketopper, an India-based quantitative trading firm. Previously, Mr. Schwager was a partner in the Fortune Group, a London-based hedge fund advisory firm, which specialized in creating customized hedge fund portfolios for institutional clients, and also spent over twenty years as a director of futures research for some of Wall Street's leading firms.--This text refers to the hardcover edition.
- ASIN : B009UG7DCS
- Publisher : Wiley; 1st edition (October 19, 2012)
- Publication date : October 19, 2012
- Language : English
- File size : 8083 KB
- Text-to-Speech : Enabled
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Not Enabled
- Word Wise : Enabled
- Print length : 373 pages
- Page numbers source ISBN : 1118494563
- Lending : Enabled
- Best Sellers Rank: #1,035,240 in Kindle Store (See Top 100 in Kindle Store)
- Customer Reviews:
About the author
Top reviews from the United States
There was a problem filtering reviews right now. Please try again later.
The book is broken into three sections.
1. Markets, Returns & Risk
2. Hedge Funds as Investments
3. Portfolio Matters
Parts 1 & 3 were strong and worked well together but the section on Hedge Funds feels wildly out of place. This book is more of a reality check for portfolio management than a trading book and is very different than any of his market wizard books (which are excellent).
If you're strictly a trader that watches intraday charts, this book has little value for you. If you manage a portfolio of assets and have been schooled on the modern portfolio theory taught in academia and broadly accepted by many professional long only money managers, this book will open your eyes to the fact that much of what you believe is built on false market assumptions.
But Market Sense and Nonsense has nothing to do with how markets actually work today. Having read several books by both authors I got the impression this book was actually ghost written for them and the publisher changed the title of the book prior to publication to make it more marketable.
The information contained in this offering is so general that you can find it free on the internet.
The book really diminishes the Schwager and Greenblatt brands.
Jack's latest book, Market Sense and Nonsense, is a very different book than his previous work. It differs from the interview style books for which he is primarily known. It also differs from the more text book style work he did in the past. This time, it's his own opinions. His own research.
In this book, Jack gives his views on what he believes to be important misconceptions and mistakes in the markets. He points out behavior of market professionals which make absolutely no sense. He shows how even seasoned investors often misunderstand important concepts. How they are guided by ideas and preconceptions which will end up hurting them.
That I'm a fan of Jack's is probably clear from this review. I own all his books and they are all excellent. With this new style, he does not disappoint. If it was up to me, this book too should be part of the mandatory curriculum in business schools.