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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.
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