Market Sense and Nonsense: How the Markets Really Work (and How They Don't)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.
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Contents
TheTyranny ofPast Returns | |
The Deficient Market Hypothesis | |
Why the Efficient Market Hypothesis Is Destined for | |
Return Strategy Why DoPast HighReturn Sectorsand Strategy Styles | |
The Mismeasurement of Risk | |
Why Volatility Is Not Just about Risk and | |
What You GetMay NotBeWhat You Expect | |
How to Evaluate Past Performance WhyReturn Alone Is Meaningless | |
Correlation Facts and Fallacies | |
TheOrigin ofHedge Funds | |
Hedge Fund Investing Perception and Reality | |
Fearof Hedge Funds ItsOnly Human | |
The Leverage Fallacy | |
Investment Observations | |
OptionsUnderstanding the Basics | |
Other editions - View all
Market Sense and Nonsense: How the Markets Really Work (and How They Don't) Jack D. Schwager No preview available - 2012 |