"Peter Mallouk shares useful investment techniques, discusses the importance of disciplined investment management, and pinpoints common, avoidable mistakes made by professional and everyday investors alike"--
"Peter Mallouk shares useful investment techniques, discusses the importance of disciplined investment management, and pinpoints common, avoidable mistakes made by professional and everyday investors alike"--
PETER MALLOUK is President and Chief Investment Officer of Creating Planning and its affiliated companies. Peter's companies provide comprehensive wealth management services to their clients, including investment management, financial planning, charitable planning, retirement plan consulting, and tax and estate planning services.
Inhaltsangabe
Preface xiii
Acknowledgments xv
About the Author xvii
Legal Disclosure xix
Introduction The Market Wants to Be Your Friend xxi
Mistake #1 Market Timing 1
The Idiots 5
Why Is It So Hard to Beat the Market? 6
Efficient Markets 7
The Evidence (Research and Stuff) 8
The Media Get It Wrong, Over and Over Again 8
Economists Get It Wrong, Over and Over Again 9
Investment Managers Get It Wrong, Over and Over Again 14
Newsletters Get It Wrong, Over and Over Again 17
Your Buddy 18
Strategies That Don't Sound Like Market Timing but Are Market Timing--Oh, and They Don't Work Either 19
Asset-Class Rotation 19
Tactical Asset Allocation 20
Style Rotation 20
Sector Rotation 20
What Smart Investors Have to Say on Market Timing 20
Knowing All This, Why Would Anyone Market Time? 21
Corrections 22
Bear Markets: An Overview 26
Bear Markets Happen for Different Reasons, but the Outcome Is Always the Same 27
Bear Markets Are Not Predictable 28
When Bear Markets "Turn," They Make People on the Sidelines Look Silly 30
The Market Is Volatile--Get Used to It 30
You Can't Wait for Consumers to Feel Good 31
Learning to Accept the Bear Markets 33
Miscalculating the Risk of Market Timing 34
But What If I Am Perfect? 34
Lump-Sum Investing versus Dollar-Cost Averaging 36
Learning to Fly 40
Avoiding Mistake #1--Market Timing 41
Mistake #2 Active Trading 43
The History of Active Trading 44
Active Investment Managers Lose to Indexing 45
Newsletters Lose to Indexing 45
Active Mutual Funds Lose to Indexing 45
Survivor Bias (a.k.a. Mutual Fund Performance Is Even Worse Than the Data Suggests) 47
What About the Winners, Huh? What About the Winners?! 48
Hedge Funds Lose to Indexing 51
Endowments--Misperception of Performance 56
Venture Capital (Sounds Sexy but Usually a Dog) 57
The Taxman Cometh (a.k.a. Dear Goodness, It Gets Worse) 59
Portfolio Activity Hurts Performance 59
But Doesn't Active Management
Work in a Down Market? 60
Why Indexes Win 61
But Indexing Results in Average Returns 62
S&P 500, Here I Come! 62
Avoiding Mistake #2--Active Trading 64
Mistake #3 Misunderstanding Performance and Financial Information 65
Misunderstanding #1--Judging Performance in a Vacuum 65
Misunderstanding #2--Believing the Financial Media Exists to Help You Make Smart Decisions (a.k.a. the Media Is Killing You) 67
Misunderstanding #3--Believing That the Market Cares About Today 71
Misunderstanding #4--Believing an All-Time High Means the Market is Due for a Pullback 74
