The Little Book of Market Myths
How to Profit by Avoiding the Investing Mistakes Everyone Else Makes
Little Books. Big Profits
1. Edition March 2013
224 Pages, Hardcover
Wiley & Sons Ltd
Exposes the truth about common investing myths and misconceptions and shows you how the truth shall set you free--to reap greater long-term and short-term gains
Everybody knows that a strong dollar equals a strong economy, bonds are safer than stocks, gold is a safe investment and that high PEs signal high risk...right? While such "common-sense" rules of thumb may work for a time as investment strategies, as New York Times and Wall Street Journal bestselling author, Ken Fisher, vividly demonstrates in this wise, informative, wholly entertaining new book, they'll always let you down in the long run. Ken exposes some of the most common--and deadly--myths investors swear by, and he demonstrates why the rules-of-thumb approach to investing may be robbing you of the kinds returns you hope for.
* Dubbed by Investment Advisor magazine one of the 30 most influential individuals of the last three decades, Fisher is Chairman, and CEO of a global money management firm with over $32 billion under management
* Fisher's Forbes column, "Portfolio Strategy," has been an extremely popular fixture in Forbes for more than a quarter century thanks to his many high-profile calls
* Brings together the best "bunks" by Wall Street's Master Debunker in a fun, easy-to-digest, bite-size format
* More than just a list of myths, Fisher meticulously explains of why each commonly held belief or strategy is dead wrong and how damaging it can be to your financial health
* Armed with this book, investors can immediately identify major errors they may be committing and adjust their strategies for greater investing success
Chapter One Bonds Are Safer Than Stocks 1
Chapter Two Asset Allocation Short-Cuts 17
Chapter Three Volatility and Only Volatility 27
Chapter Four More Volatile Than Ever 37
Chapter Five The Holy Grail--Capital Preservation and Growth 49
Chapter Six The GDP-Stock Mismatch Crash 55
Chapter Seven 10% Forever! 67
Chapter Eight High Dividends for Sure Income 75
Chapter Nine The Perma-Superiority of Small-Cap Value 83
Chapter Ten Wait Until You're Sure 93
Chapter Eleven Stop-Losses Stop Losses 105
Chapter Twelve High Unemployment Kills Stocks 113
Chapter Thirteen Over-Indebted America 131
Chapter Fourteen Strong Dollar, Strong Stocks 153
Chapter Fifteen Turmoil Troubles Stocks 161
Chapter Sixteen News You Can Use 171
Chapter Seventeen Too Good to Be True 181
Notes 191
Acknowledgments 201
About the Authors 205
LARA HOFFMANS is Vice President of Content at Fisher Investments, managing editor of MarketMinder.com, a regular contributor to Forbes.com and coauthor of the bestsellers, The Only Three Questions That Count, The Ten Roads to Riches, How to Smell a Rat, Debunkery and Markets Never Forget (But People Do).
