Markets Never Forget (But People Do)
How Your Memory Is Costing You Money--and Why This Time Isn't Different
Published on 18. October 2011
240 pages
978-1-118-16760-1 (ISBN)
Description
Sir John Templeton, legendary investor, was famous for saying, "Thefour most dangerous words in investing are, 'This time it'sdifferent.'" He knew that though history doesn't repeat, notexactly, history is an excellent guide for investors.
In Markets Never Forget But People Do: How Your Memory IsCosting You Money and Why This Time Isn't Different, long-timeForbes columnist, CEO of Fisher Investments, and 4-time New YorkTimes bestselling author Ken Fisher shows how and why investors'memories fail them--and how costly that can be. Moreimportant, he shows steps investors can take to begin reducingerrors they repeatedly make. The past is never indicative of thefuture, but history can be one powerful guide in shaping forwardlooking expectations. Readers can learn how to see the world moreclearly--and learn to make fewer errors--by understandingjust a bit of investing past.
In Markets Never Forget But People Do: How Your Memory IsCosting You Money and Why This Time Isn't Different, long-timeForbes columnist, CEO of Fisher Investments, and 4-time New YorkTimes bestselling author Ken Fisher shows how and why investors'memories fail them--and how costly that can be. Moreimportant, he shows steps investors can take to begin reducingerrors they repeatedly make. The past is never indicative of thefuture, but history can be one powerful guide in shaping forwardlooking expectations. Readers can learn how to see the world moreclearly--and learn to make fewer errors--by understandingjust a bit of investing past.
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Kenneth L. Fisher | Lara W. Hoffmans
Markets Never Forget (But People Do)
How Your Memory Is Costing You Money--and Why This Time Isn't Different
Book
11/2011
Wiley
€30.50
Shipment within 15-20 days
Persons
Ken Fisher is best known for his prestigious "PortfolioStrategy" column in Forbes magazine, where his over 27-year tenureof high-profile calls makes him the fourth longest-runningcolumnist in Forbes's 90-plus year history. He is the founder,Chairman and CEO of Fisher Investments, an independent global moneymanagement firm managing tens of billions for individuals andinstitutions globally. Fisher is ranked #252 on the 2010 Forbes 400list of richest Americans, and #736 on the 2011 Forbes globalbillionaires list. In 2010, Investment Advisor magazine named himamong the 30 most influential individuals of the last threedecades. Fisher has authored numerous professional and scholarlyarticles, including the award-winning "Cognitive Biases in MarketForecasting." He has also published seven previous books, includingNew York Times and Wall Street Journal bestsellers,The Only Three Questions That Count, The Ten Roads toRiches, How to Smell a Rat and Debunkery, allpublished by Wiley. Fisher has been published, interviewed and/orwritten about in many major American, British and German finance orbusiness periodicals. He has a weekly column in Focus Money,Germany's leading weekly finance and business magazine.
Lara Hoffmans is a content manager at Fisher Investments,managing editor of MarketMinder.com, a regular contributor toForbes.com and co-author of the bestsellers, The Only ThreeQuestions That Count, The Ten Roads to Riches, How toSmell a Rat and Debunkery.
Lara Hoffmans is a content manager at Fisher Investments,managing editor of MarketMinder.com, a regular contributor toForbes.com and co-author of the bestsellers, The Only ThreeQuestions That Count, The Ten Roads to Riches, How toSmell a Rat and Debunkery.
Content
Preface ix
Acknowledgments xvii
Chapter 1 The Plain-Old Normal 1
Yes Sir, Sir John 1
The Normal Normal 5
The Jobless Recovery 14
The Always Feared, Rarely Seen Double Dip 23
Chapter 2 Fooled by Averages 31
Bull Markets Are Inherently Above Average 32
Viva the V 36
Normal Returns Are Extreme, Not Average 47
The Pause That Refreshes (and Confuses) 49
Getting Average Returns Is Hard--Really Hard 53
Chapter 3 Volatility Is Normal--and Volatile 57
What the Heck Is Volatility? 58
Volatility Is Volatile 61
The Daily Grind 65
Stocks Are Less Volatile Than Bonds? 67
Economic Volatility--Also Normal 69
Volatility Isn't Inherently Bad 71
Never a Dull Moment 74
Chapter 4 Secular Bear? (Secular) Bull! 81
Seeing the World Through Bear- Colored Glasses 82
Two Secular Bear Markets? 84
Stocks--Up Vastly More Than Down 90
Chapter 5 Debt and Deficient Thinking 101
Deficits Aren't Bad, but Surpluses Will Kill You 105
The History of Big Government Debt 110
Just Who Is at Default Here? 116
Chapter 6 Long- Term Love and Other Investing Errors123
No One Category Is Best for All Time 124
Long- Term Love Is Like Long- Term Forecasting--Both Wrong129
It's Still Heat Chasing Even When It Seems Safe 134
Use History to Your Advantage 146
Chapter 7 Poli-Ticking 151
Enter the Ideology- Free Zone 152
Your Party Isn't Better 153
Presidents and Risk Aversion 155
Perverse Inverse--It's Four and One 160
Poli- Tics Go Global 170
Poli- Tics Versus Entrepreneurs 172
Chapter 8 It's (Always Been) a Global World, After All177
It's Always Been a Small World 179
Seeing the World Right 186
Conclusion 194
Appendix 197
Notes 201
Index 211
Acknowledgments xvii
Chapter 1 The Plain-Old Normal 1
Yes Sir, Sir John 1
The Normal Normal 5
The Jobless Recovery 14
The Always Feared, Rarely Seen Double Dip 23
Chapter 2 Fooled by Averages 31
Bull Markets Are Inherently Above Average 32
Viva the V 36
Normal Returns Are Extreme, Not Average 47
The Pause That Refreshes (and Confuses) 49
Getting Average Returns Is Hard--Really Hard 53
Chapter 3 Volatility Is Normal--and Volatile 57
What the Heck Is Volatility? 58
Volatility Is Volatile 61
The Daily Grind 65
Stocks Are Less Volatile Than Bonds? 67
Economic Volatility--Also Normal 69
Volatility Isn't Inherently Bad 71
Never a Dull Moment 74
Chapter 4 Secular Bear? (Secular) Bull! 81
Seeing the World Through Bear- Colored Glasses 82
Two Secular Bear Markets? 84
Stocks--Up Vastly More Than Down 90
Chapter 5 Debt and Deficient Thinking 101
Deficits Aren't Bad, but Surpluses Will Kill You 105
The History of Big Government Debt 110
Just Who Is at Default Here? 116
Chapter 6 Long- Term Love and Other Investing Errors123
No One Category Is Best for All Time 124
Long- Term Love Is Like Long- Term Forecasting--Both Wrong129
It's Still Heat Chasing Even When It Seems Safe 134
Use History to Your Advantage 146
Chapter 7 Poli-Ticking 151
Enter the Ideology- Free Zone 152
Your Party Isn't Better 153
Presidents and Risk Aversion 155
Perverse Inverse--It's Four and One 160
Poli- Tics Go Global 170
Poli- Tics Versus Entrepreneurs 172
Chapter 8 It's (Always Been) a Global World, After All177
It's Always Been a Small World 179
Seeing the World Right 186
Conclusion 194
Appendix 197
Notes 201
Index 211
