now that you are tempted to jump back into the stockmarket (green shoots and all) a word of advice from an academic.
btw, more of the wsj seems to be available free for mobile users than on the web.
---------- Forwarded message ----------
From: <wsj2@mobile2.wsj.com>
Date: Wed, Aug 26, 2009 at 8:18 PM
Subject: Investment Mistakes: The View From Behavioral Finance - WSJ.com
To:
http://www.wsj.com/article/SB10001424052970204313604574326223160094150.html
From: <wsj2@mobile2.wsj.com>
Date: Wed, Aug 26, 2009 at 8:18 PM
Subject: Investment Mistakes: The View From Behavioral Finance - WSJ.com
To:
http://www.wsj.com/article/SB10001424052970204313604574326223160094150.html
3 comments:
It's looking like it could be a W-shaped recovery anyway. So stocks could easily plunge from their current mild growth.
On the subject of social mood and behavioral economics. I turn to Robert Prechter of elliot wave international. Bob Prechter is a big proponent of deflation in the US in the coming years. He predicts all assets including stocks, commodities (Including Gold) and real estate will all lose value even as there is a strong short squeeze on the US dollar. He says that the US dollar will appreciate in value even as people scramble and compete to pay back loans in dollars which will be ever more limited in value.
A lot of what he predicted before has come true. I am seriously considering subscribing to his newsletter, the "Elliot Wave Theorist". He predicted the bull market in the late 1990s and also that the subsequent downturn would be the mother of all bear markets, which we are experiencing right now.
His books "The elliot wave principle" and "conquer the crash" are must reads. Check out www.elliotwave.com
Just want to share my thoughts on the stock market books. I think that "The Intelligent Investor" by "Benjamin Graham" is the best investment book ever written.
Next is Warren Buffet's letters to the shareholders which can be read on : http://www.berkshirehathaway.com/
These 2 are the must for any investor. As runners up candidates I would suggest the following books :
1) Common Stocks and Uncommon Profits - by Phil Fisher
2) One up on the Wall Street - by Peter Lynch
3) Beating the Street - by Peter Lynch.
The essence of Graham or Buffett philosophy of value investing is to buy a business for a significant discount to its value to a private owner.
The focus is more on the business rather than what the price of the business is going to do.
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