DOCSLIB.ORG

The New Laws of the Stock Market Jungle

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The New Laws of the Stock Market Jungle Praise for The New Laws of the Stock Market Jungle “A sophisticated trip through the ever-changing jungle.” —Barton Biggs, Managing Partner, Traxis Partners “Michael Panzner, an experienced investment professional, has writ- ten a great book! It contains so many interesting observations sup- ported by well-selected figures that every investor will gain insights that will serve him well for the rest of his life!” —Marc Faber, Managing Director, Marc Faber Limited, Editor, Gloom, Boom & Doom Report “‘This time is different’ may be the most dangerous phrase in the investment lexicon, but sometimes things really are different. In this valuable book, Michael Panzner applies his encyclopedic knowledge of the markets over the last three decades to analyzing the many crucial ways in which investing today is, indeed, different than ever before.” —Mark Hulbert, Editor, Hulbert Financial Digest, Columnist, CBS Marketwatch “The New Laws of the Stock Market Jungle is definitely not for dum- mies. This sophisticated but lively book is for serious investors who want an insider’s perspective on making money in uncertain markets.” —Jon Markman, Contributing Editor, CNBC on MSN Money, and Senior Investment Strategist and Portfolio Manager, Pinnacle Investment Advisors “Stock market speculation is both an art and a science and with this book, Michael Panzner explains just why this is so in a way practical and thorough enough to actually help you invest and trade more intelligently. What more could anyone ask?” —Peter Navarro, author of If It’s Raining in Brazil, Buy Starbucks and When the Market Moves, Will You Be Ready? “Over the last decade, important changes in technology and trading rules have transformed the way that Wall Street operates, while new incentives for institutional investors have altered their behavior and our markets. Panzner’s book identifies new opportunities and threats and offers insights that can help investors to profit in the years ahead.” —John Nofsinger, author of Investment Madness and Infectious Greed “Panzner’s book reveals many of the tools and tricks we professionals use every day to make money. If you wonder why the ‘little guys’ are always at a disadvantage and why many commentators and academ- ics can’t seem to explain these markets, it is because they are unaware of these factors. Honestly, I wish he had not said a thing.” —Robert Jafek, principal, Torrey Pines Capital Management, and former partner, Nicholas-Applegate Capital Management “As an equity dealer for a fund group managing nearly $30 billion, I have used Michael Panzner’s market insights and expertise on a daily basis to help me trade effectively. Now, through this book, his 20 years of market experience are available to everyone. From the sea- soned investment professional to the casual investor, anyone looking to gain a better understanding of how new market forces are chang- ing the dynamics of investing today, will benefit from reading this book.” —Ronald J. Lysek, Jr., International Equity Trader, Franklin Mutual Advisers, Inc. “This ‘bible’ on trading and markets is packed with the most up-to- date information. I recommend this book to anyone who wants to understand the intricacies of today’s stock market environment.” —Peter Tropaitis, Vice President, Senior Global Equity Trader, Federated Investors The New Laws of the Stock Market Jungle An Insider’s Guide to Successful Investing in a Changing World Michael J. Panzner Library of Congress Cataloging-in-Publication Data Panzner, Michael J. The new laws of the stock market jungle : an insider’s guide to successful investing in a changing world / Michael J. Panzner. p. cm. Includes bibliographical references and index. ISBN 0-321-24785-X 1. Investments. 2. Stocks. 3. Stock exchanges. I. Title. HG4521.P26 2005 332.63’22--dc22 2004050519 Editorial/Production Supervision: Donna Cullen-Dolce Cover Design Director: Jerry Votta Cover Design: Nina Scuderi Art Director: Gail Cocker-Bogusz Manufacturing Buyer: Maura Zaldivar Executive Editor: Jim Boyd Marketing Manager: John Pierce Editorial Assistant: Richard Winkler This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting or other professional services or advice by publishing this book. Each individual situation is unique. Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately. The author and the publisher disclaim any liability, loss or risk resulting, directly or indirectly, from the use or application of any of the contents of this book. © 2005 Michael J. Panzner Published by Pearson Education, Inc. Publishing as Financial Times Prentice Hall Upper Saddle River, New Jersey 07458 Financial Times Prentice Hall offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact: U.S. Corporate and Government Sales, 1-800-382-3419, [email protected]. For sales outside of the U.S., please contact: International Sales, 1-317-581-3793, [email protected]. Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America 1st Printing ISBN 0-321-24785-X Pearson Education Ltd. Pearson Education Australia Pty, Limited Pearson Education Singapore, Pte. Ltd. Pearson Education North Asia Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd To Catherine, Girl of my dreams, Love of my life, My best friend. In an increasingly competitive world, it is quality of thinking that gives an edge—an idea that opens new doors, a technique that solves a problem, or an insight that simply helps make sense of it all. We work with leading authors in the various arenas of business and finance to bring cutting-edge thinking and best learning practice to a global market. It is our goal to create world-class print publications and electronic products that give readers knowledge and understanding which can then be applied, whether studying or at work. To find out more about our business products, you can visit us at www.ft-ph.com FINANCIAL TIMES PRENTICE HALL BOOKS For more information, please go to www.ft-ph.com Business and Society Douglas K. Smith On Value and Values: Thinking Differently About We in an Age of Me Current Events Alan Elsner Gates of Injustice: The Crisis in America’s Prisons John R. Talbott Where America Went Wrong: And How to Regain Her Democratic Ideals Economics David Dranove What’s Your Life Worth? Health Care Rationing…Who Lives? Who Dies? Who Decides? Entrepreneurship Dr. Candida Brush, Dr. Nancy M. Carter, Dr. Elizabeth Gatewood, Dr. Patricia G. Greene, and Dr. Myra M. Hart Clearing the Hurdles: Women Building High Growth Businesses Oren Fuerst and Uri Geiger From Concept to Wall Street: A Complete Guide to Entrepreneurship and Venture Capital David Gladstone and Laura Gladstone Venture Capital Handbook: An Entrepreneur’s Guide to Raising Venture Capital, Revised and Updated Thomas K. McKnight Will It Fly? How to Know if Your New Business Idea Has Wings… Before You Take the Leap Stephen Spinelli, Jr., Robert M. Rosenberg, and Sue Birley Franchising: Pathway to Wealth Creation Executive Skills Cyndi Maxey and Jill Bremer It’s Your Move: Dealing Yourself the Best Cards in Life and Work John Putzier Weirdos in the Workplace Finance Aswath Damodaran The Dark Side of Valuation: Valuing Old Tech, New Tech, and New Economy Companies Kenneth R. Ferris and Barbara S. Pécherot Petitt Valuation: Avoiding the Winner’s Curse International Business and Globalization John C. Edmunds Brave New Wealthy World: Winning the Struggle for World Prosperity Robert A. Isaak The Globalization Gap: How the Rich Get Richer and the Poor Get Left Further Behind Johny K. Johansson In Your Face: How American Marketing Excess Fuels Anti-Americanism Peter Marber Money Changes Everything: How Global Prosperity Is Reshaping Our Needs, Values, and Lifestyles Fernando Robles, Françoise Simon, and Jerry Haar Winning Strategies for the New Latin Markets Investments Zvi Bodie and Michael J. Clowes Worry-Free Investing: A Safe Approach to Achieving Your Lifetime Goals Michael Covel Trend Following: How Great Traders Make Millions in Up or Down Markets Aswath Damodaran Investment Fables: Exposing the Myths of “Can’t Miss” Investment Strategies Harry Domash Fire Your Stock Analyst! Analyzing Stocks on Your Own David Gladstone and Laura Gladstone Venture Capital Investing: The Complete Handbook for Investing in Businesses for Outstanding Profits D. Quinn Mills Buy, Lie, and Sell High: How Investors Lost Out on Enron and the Internet Bubble D. Quinn Mills Wheel, Deal, and Steal: Deceptive Accounting, Deceitful CEOs, and Ineffective Reforms Michael J. Panzner The New Laws of the Stock Market Jungle: An Insider’s Guide to Successful Investing in a Changing World H. David Sherman, S. David Young, and Harris Collingwood Profits You Can Trust: Spotting & Surviving Accounting Landmines Michael Thomsett Stock Profits: Getting to the Core—New Fundamentals for a New Age Leadership Jim Despain and Jane Bodman Converse And Dignity for All: Unlocking Greatness through Values-Based Leadership Marshall Goldsmith, Cathy Greenberg, Alastair Robertson, and Maya Hu-Chan Global Leadership: The Next Generation Management Rob Austin and Lee Devin Artful Making: What Managers Need to Know About How Artists Work J. Stewart Black and Hal B. Gregersen Leading Strategic Change: Breaking Through the Brain Barrier David M. Carter and Darren Rovell On the Ball: What You Can Learn About Business from Sports Leaders Charles J. Fombrun and Cees B.M.
Load more

Recommended publications
  • A STOCK MARKET CORRECTION SURVIVAL GUIDE What You Need to Do Now
    Investment and Company Research Select Research SPECIAL REPORT A STOCK MARKET CORRECTION SURVIVAL GUIDE What You Need To Do Now Rob Goldman August 1, 2014 [email protected] CONCLUSION The start of a major correction rarely begins with one catalyst. Instead, they commence in response to multiple events, often within a week of one another. In my view, this has just happened in the past two trading sessions and investors must act quickly and decisively in the near term. The good news is that money can be made even in the throes of a corrective phase and we provide you with specific guidance in this special report. INTRODUCTION "The four most dangerous words in investing are: this time it's different." Sir John Templeton Mid-morning on Wednesday, July 30th, we viewed early economic and market events as a signal that the stock market rally was officially over and that we in fact entered into the start of a corrective phase a week earlier when the S&P 500 Index reached the 1991 mark. We issued a blog on our website and throughout cyberspace proclaiming the market top. The combination of Wednesday’s events (in the AM and PM) with Thursday’s economic news prompted the biggest stock selloff in months and only affirms the thesis made in the blog. Figure 1: S&P 200-Day Performance www.goldmanresearch.com Copyright © Goldman Small Cap Research, 2014 Page 1 of 9 Investment and Company Research Select Research SPECIAL REPORT While others may argue otherwise and trading on Friday may be a temporary return to a bullish stance, we deem the situation urgent enough to produce this special report with the intention of explaining the current correction and providing guidance on how to respond to it.
    [Show full text]
  • Dow Theory for the 21St Century Schannep Timing Indicator COMPOSITE Indicator
    st April 1 , 2015 Dow Theory for the 21st Century Schannep Timing Indicator COMPOSITE Indicator Charting a Course of Caution Dow Jones: 17,776.12 S&P 500: 2,067.88 OVERVIEW: There are many stock market and economic indicators ‘out NYSE: 11,062.79 there’, and we can’t follow them all. But every so often we see something that causes us to take a look. Recently a couple of lesser known, or followed, indicators have given us pause in our bullishness. A MarketWatch column by Mark Hulbert about an indicator described by Norman Fosback in his 1976 ‘classic’ Stock Market Logic is intriguing. In years prior to those shown in the chart below, Fosback states that from 1942 to 1975, the "tops of 1946, '56, '59, '61, '66, '68, and '73 were all accompanied or preceded by turns in margin debt". All but 1959 were major bull market tops, as you can see at the Historic Record on our website. The concept illustrated is that ‘sophisticated’ investors aggressively use margin in bull markets, but pull in their horns when stocks start going down. Fosback further stated that when the trend is down, there is a 59% chance a bear market is in progress (41% a bull market is in progress) - not good odds. That implies the bull market topped out earlier this last month on March 2nd at 18,288.63! How’s that for a cloudy outlook? On the other hand, when margin debt is rising there is an 85% probability that a bull market is in progress – as has been the case since 2011, until now.
    [Show full text]
  • Dare to Be Great
    Memo to: Oaktree Clients From: Howard Marks Re: Dare to Be Great In one of the most colorful vignettes of the early 1970s, Glenn Turner, the head of Koscot Interplanetary, would fly into a small Midwestern town in his Learjet (when that was a huge deal). Two dwarfs would hop out and unroll a red carpet. Turner would emerge under a banner reading “Dare to Be Great” and vacuum up money through a pyramid marketing scheme based on selling motivational tapes containing the secret of getting rich. Turner’s long gone from the scene, but daring to be great still deserves our consideration, even in the absence of a surefire recipe for success. L.P. This memo stems from an accumulation of thoughts on the subject of how investment management clients might best pursue superior results. Typically my thoughts pile up, and then something prompts me to turn them into a memo. In this case, the impetus came while I read “Hedgehogging” by Barton Biggs. I’ll come back to it later. How Can We Achieve Superior Investment Results?MANAGEMENT, The answer is simple: not only am I unaware of any RESERVED.formula that alone will lead to above average investment performance, but I’m convinced such a formula cannot exist. According to one of my favorite sources of inspiration, the late John Kenneth Galbraith: CAPITAL There is nothing reliable to be learnedRIGHTS about making money. If there were, study would be intense and everyone with a positive IQ would be rich. ALL Of course there can’t be a roadmap to investment success.
    [Show full text]
  • Biggs on Finance, Economics, and the Stock Market: Barton's
    BIGGS on FINANCE, ECONOMICS, and the STOCK MARKET Barton’s Market Chronicles from the Morgan Stanley Years BARTON BIGGS Cover image: © iStockphoto.com/nicoolay & © iStockphoto.com/Ursula Alter Cover design: Wiley Copyright © 2014 by Barton Biggs. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation.
    [Show full text]
  • Gruesome Growth
    GRUESOME GROWTH NO ENTERPRISE IS AN ISLAND. Every enterprise sits within a larger social reality, what we call society. From society, enterprises draw sustenance, everything they need to survive. Take this sustenance away, enterprises founder, then die, just like fish out of water. What do enterprises need from society? They need, of course, people able to perform enterprise work. The more able employees a society has to offer, the better off enterprises will be. To make the most of these employees, this “human capital,” enterprises also need financial capital. They need money for equipment and supplies, for offices and payroll, for production and marketing. Without adequate capital, human and financial, no enterprise can hope to suc- ceed. Not all enterprises with adequate capital, of course, always succeed. Many fall short. Some fail because they do not organize themselves for effective oper- ation. But even wonderfully effective enterprises can — and do — fail. An enterprise can assemble a wonderfully talented workforce. An enterprise can outfit that workforce with the finest tools and resources. An enterprise can sweep away the hierarchical underbrush that keeps employees from doing their best. An enterprise can get everything right and still flop miserably for one rea- son and one reason alone. If not enough customers who want an enterprise’s products can afford to buy them, the enterprise will fail. Always. In desperately poor societies, nations where people have precious little wealth to spend, enterprises will always struggle to gain a foothold. The same struggling will take place in societies where the wealth available to spend sud- denly starts shrinking, during, for instance, a recession or depression.
    [Show full text]
  • ALL ABOUT MARKET TIMING the Easy Way to Get Started FM Masonson141331-6 8/27/03 10:24 AM Page Ii
    FM_Masonson141331-6 8/27/03 10:24 AM Page i ALL ABOUT MARKET TIMING The Easy Way to Get Started FM_Masonson141331-6 8/27/03 10:24 AM Page ii OTHER TITLES IN THE “ALL ABOUT . .” FINANCE SERIES All About Stocks, 2nd edition by Esme Faerber All About Bonds and Bond Mutual Funds, 2nd edition by Esme Faerber All About Options, 2nd edition by Thomas McCafferty All About Futures, 2nd edition by Russel Wasendorf All About Commodities by Thomas McCafferty and Russel Wasendorf All About Real Estate Investing, 2nd edition by William Benke and Joseph M. Fowler All About DRIPs and DSPs by George C. Fisher All About Mutual Funds, 2nd edition by Bruce Jacobs All About Stock Market Strategies by David Brown and Kassandra Bentley All About Index Funds by Richard Ferri All About Hedge Funds by Robert Jaegar All About Technical Analysis by Constance Brown All About Exchange-Traded Funds by Archie Richards FM_Masonson141331-6 8/27/03 10:24 AM Page iii ALL ABOUT MARKET TIMING The Easy Way to Get Started LESLIE N. MASONSON McGraw-Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto ebook_copyright 6x9.qxd 10/21/03 11:43 AM Page 1 Copyright © 2004 by Leslie M. Masonson. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.
    [Show full text]
  • Technical Analysis
    ptg TECHNICAL ANALYSIS ptg Download at www.wowebook.com This page intentionally left blank ptg Download at www.wowebook.com TECHNICAL ANALYSIS THE COMPLETE RESOURCE FOR FINANCIAL MARKET TECHNICIANS SECOND EDITION ptg Charles D. Kirkpatrick II, CMT Julie Dahlquist, Ph.D., CMT Download at www.wowebook.com Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jim Boyd Editorial Assistant: Pamela Boland Operations Manager: Gina Kanouse Senior Marketing Manager: Julie Phifer Publicity Manager: Laura Czaja Assistant Marketing Manager: Megan Colvin Cover Designer: Chuti Prasertsith Managing Editor: Kristy Hart Project Editor: Betsy Harris Copy Editor: Karen Annett Proofreader: Kathy Ruiz Indexer: Erika Millen Compositor: Bronkella Publishing Manufacturing Buyer: Dan Uhrig © 2011 by Pearson Education, Inc. Publishing as FT Press Upper Saddle River, New Jersey 07458 FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, [email protected]. For sales outside the U.S., please contact International Sales at [email protected]. ptg Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America First Printing November 2010 ISBN-10: 0-13-705944-2 ISBN-13: 978-0-13-705944-7 Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd.
    [Show full text]
  • Hedgehogging Represents
    Rare is the opportunity to chat with a legendary figure and hear the unvarnished truth about what really goes on behind the scenes. Hedgehogging represents just such an opportunity, allowing you to step inside the world of Wall Street with Barton Biggs as he discusses investing in general, hedge funds in par¬ ticular, and how he has learned to find and profit from the best moneymaking opportunities in an eat-what-you-kill, cutthroat investment world. u edgehogging is one of the most instructive, £1 fascinating, and inherently entertaining investment books of this or any year. Written by legendary Wall Street investor and executive Bar¬ ton Biggs, it provides an impressionistic view of professional investors as well as the agony and ec¬ stasy that are endemic to this frenetic and highly competitive world. The book tells of the successes and the failures of these men and women. It unveils the moral code that they live by, and describes their different life styles and operating patterns. It also relates the adventures and travails of these incredibly intense and obsessed investment personalities, their peculiarities, and the stresses they experience. Hedgehogs are strange, insecure, but fascinat¬ ing characters, preying on each other and other investors in the battle for investment survival. Biggs was an English and Creative Writing major at Yale who studied under Robert Penn Warren. His book is populated with a mixture of real iden¬ tifiable people and real disguised people as well as with occasional fiction. There is no exaggeration. Everything except for one whimsical tale, which is completely fictional, actually happened.
    [Show full text]
  • Potential Implications of the COVID-19 Pandemic for Securities and Derivative Litigation
    Potential Implications of the COVID-19 Pandemic for Securities and Derivative Litigation May 14, 2020 Agenda 1 Will Securities Lawsuits Come? 2 COVID-19 Bear Market 3 Disclosure Issues 4 Accounting Issues 5 Issues in Potential Economic Analysis for Loss Causation and Damages 6 Fiduciary Duties and Best Practices 7 Professional Profiles COVID-19: Implications for Securities Litigation – 5/14/20 – Page 2 Will Securities 1 Lawsuits Come? COVID-19: Implications for Securities Litigation – 5/14/20 – Page 3 Will This Time Be Different? “The underpinnings of the COVID-19 crisis are fundamentally different, the lawyers said, than those of the 2008 crash.…Shareholders sued to prove that banks and other defendants deliberately misrepresented not just the quality of the securities but also the risk they faced from exposure to toxic mortgage-backed certificates and more complex instruments referencing them. This time, said Toll, Leviton, Bleichmar and Darren Robbins of Robbins Geller Rudman & Dowd, there’s no analogous systemic deception. Fraud claims will be idiosyncratic….” Alison Frankel, “Shareholders’ class action lawyers: We’re not rushing to bring COVID-19 cases,” Reuters, 3/17/20 COVID-19: Implications for Securities Litigation – 5/14/20 – Page 4 Will This Time Be Different? “…[P]laintiffs’ lawyers I spoke to said they have no intention of filing reflexive class actions alleging that companies slammed by the pandemic failed to provide adequate risk warnings to shareholders. ‘Trying to take advantage of a worldwide tragic epidemic disaster?’ said Steven Toll of Cohen Milstein Sellers & Toll. ‘I just hope those suits aren’t brought.’” Robbins and Leviton said they do expect companies to disclose bad news in the midst of stock market volatility, just as they did in the 2008 crisis, in order to use broad declines in stock indexes to camouflage investor reaction to their disclosures.
    [Show full text]
  • How to Re-Build Your Wealth
    www.whatinvestment.co.ukwww.whatinvestment.co.ukWhat FOR Investment A WEALTHIER FUTURE IssueIssue 439 446 October May 2020 2019 £4.50£4.50 Includes the CHINA SUPPLEMENT Long-term opportunities HOW TO RE-BUILD YOUR WEALTH The get-rich slowly investment funds Page 28 9 770263 PassiveTo boldly go ITs to Watch InvestingCould space be the next Infrastructure and UK 953115 Understandinginvestment frontier? the facts growth & income trusts for fromPage the 14 fiction the long-term investor Page 48 05 Page XX >| Editorial What Investment Email format: firstname. Look to the future, not the past [email protected] Editorial Editor-in-chief Lawrence Gosling 020 7250 7027 When there is a significant All the benefits of the rise in Subscriptions decline in the levels of stock most markets during 2019 had [email protected] Alyssia Sutherland 020 7065 7563 markets, fund managers, been wiped out in those first 10 Advertising commentators and historians weeks of 2020. My investments Sales Manager: look for precedents to create are now back to 2017 or 2018 Andrew Dodds 020 7250 7033 some kind of context. levels, so I share the ‘investment Design and production If we can see that something pain’ many of you will be feeling. Phil Turton has happened before, or The one bit of advice which I Stock images: Shutterstock.com something very similar, we feel think many of you will already Bonhill Group Events we can get a better perspective know and will be practicing is not Head of Event Operations (on maternity leave) about what is happening to us to panic.
    [Show full text]
  • Investor Attention and the Low Volatility Anomaly
    Low Volatility From December 9th's WSJ: THE REASONS LOW-VOLATILITY STOCKS HAVE FALLEN OUT OF FAVOR BY MARK HULBERT After a couple months of poor performance, low-volatility stocks have fallen out of favor. But you shouldn’t give up on them. The recent downturn is just a blip in a long history of delivering strong performance with less risk. Consider the S& P 500 Low Volatility Index, which comprises the 100 stocks from the S& P 500 that have experienced the least volatility over the trailing year. From February 1972, which is how far back data extend, through November, this index has a 12.4% annualized return, according to S& P Dow Jones Indices, versus 10.5% for the S& P 500 itself. (Both returns reflect the reinvestment of dividends.) Better yet, the Low Volatility Index was 18% less volatile, or risky, than the S& P 500 itself. This result stands much of investment theory on its head, since a riskier strategy is supposed to produce greater returns to entice investors to incur that higher risk. In the case of low-volatility stocks, however, investors in effect are being paid, in the former of higher returns, to incur less risk. One theory is that investors are drawn to more-volatile stocks because they are “exciting”—thereby bidding their prices to too high a level relative to those of more “boring” low-volatility stocks. This impressive record is widely known, however. So why has the strategy so suddenly fallen out of favor with investors? Before the beginning of November, for example, the low-volatility stock ETF with the most assets— iShares Edge MSCI US Minimum Volatility ETF (USMV)—had 16 straight months of net inflows, averaging over $1 billion a month, according to Ned Davis Research.
    [Show full text]
  • Biggs on Finance, Economics, and the Stock Market: Barton's Market Chronicles from the Morgan Stanley Years Barton Biggs
    To purchase this product, please visit https://www.wiley.com/en-us/9781118572306 Biggs on Finance, Economics, and the Stock Market: Barton's Market Chronicles from the Morgan Stanley Years Barton Biggs E-Book 978-1-118-65486-6 March 2014 $27.00 Hardcover 978-1-118-57230-6 March 2014 Print-on- $45.00 demand DESCRIPTION Released to the public for the first time, writings by the incomparable Barton Biggs Long considered one of the best brains on Wall Street, Barton Biggs acquired the stature of a legend within his lifetime. Among his many coups, he accurately called the rise and fall of the dot-com market, and was an energetic promoter of emerging markets, including China, well before American businesses began flocking there—and he made vast fortunes for his clients, in the process. But, as this fascinating book confirms, it wasn't Biggs's genius as a market analyst and hedge fund manager alone that made him special. The product of a keen and broad-ranging intellect in full command of his subjects—and the English language—the letters compiled in this volume leave no doubt that Barton Biggs was one of the most interesting observers of Wall Street, the financial world, and the human comedy, ever to set pen to paper. • Released from Morgan Stanley's archives and made public for the first time, the letters compiled in this volume add new luster to Biggs's reputation as a first-class finance author • Address the most essential aspects of high-frequency trading, from formulation of ideas to performance evaluation • Shares Biggs's fascinating insights and uncannily accurate predictions about an array of economic and financial topics, liberally peppered with historical references and wry humor • Organized thematically, the letters showcase Barton Biggs's observations on finance, economics and the stock market, from 1980 to 2003 ABOUT THE AUTHOR BARTON BIGGS was a well-known figure in the investment world.
    [Show full text]