Market Sense and Nonsense: How the Markets Really Work (And How Bestselling author, Jack Schwager, challenges the assumptions at the. In this engaging new book, Jack Schwager, bestselling author of Market Wizards and The New Market Wizards, takes aim at the most perniciously pervasive. Bestselling author, Jack Schwager, challenges the assumptions at the core of investment theory and practice and exposes common investor mistakes, missteps .
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Goodreads helps you keep track of books you want to read. Want to Read saving…. Want to Read Currently Reading Read. Refresh and try again. Open Preview See a Problem? Thanks for telling us about the problem. Return to Book Page. Market Sense and Nonsense: Investment errors are hardly the exclusive domain of novice investors.
Investment professionals commit their own bonsense of routine errors. One common error that manifests itself in many different forms is the tendency to draw conclusions based on insufficient or irrelevant data. The housing bubble of the s provided a classic example.
This book is a compilation of the fu Investment errors are hardly the exclusive domain of novice investors. This book is a compilation of the fundamental investment errors the author nnosense observed over his career in the markets.
Errors that permeate widely accepted academic precepts, professional money management methodologies, maarket investment behavior.
This book will be insightful to professionals and yet readable by the broader audience with an interest in investment, trading, and finance.
This book combines multiple concepts, spanning both traditional and alternative investments, and topics schwaer from basic to sophisticated, into a single accessible book. Hardcoverpages. To see what your friends thought of this book, please sign up. To ask other readers questions about Market Sense and Nonsenseplease sign up. Be the first to ask a question about Market Sense and Nonsense. Lists with This Book. Jan 13, Alan Lattanner rated it it was amazing Shelves: In all he analyzes and overturns 55 common misconceptions about the way markets work.
The book is divided into three parts plus an epilogue and two appendices. All tie together pointing the way to better-informed investment strategies. It includes a tour-de-force destruction of the efficient-market hypothesis the “deficient” hypothesis in Schwager’s words that is by itself worth the price of the book. I found this section surprisingly interesting and practical both as an active trader myself and as a prospective hedge fund investor.
Schwager points out that the risk-return profile of hedge funds is superior to mutual funds and, in the form of fund-of-funds, an investment in a hedge fund is actually available to and preferable even for investors of modest means. Appendix One is an introduction to options as an investment tool.
Appendix Jjack contains mathematical formulas for all of the risk-return metrics used in the book. Some of these are unique tools published schwageg for the first time. Schwager takes time to explore his subject matter scientifically then draws conclusions based on a strong mix of qualitative and quantitative arguments. Where appropriate he devises tests to model risk-return relationships, then presents the results in the form of crisp charts and tables.
Nearly every chapter ends with 1 a summary of the investment misconceptions aand, 2 a review of the “market reality” versus conventional wisdom, and 3 the “investment insights” or takeaways that may be useful to the reader.
For those with limited time, these chapter summaries provide a quick way to skim through the book and capture the highlights. Some of the myths that Schwager busts reveal the subtle reasons why Greenblatt’s “Magic Formula” investment method reportedly works well over long periods of time. This book is not an easy read in the manner of Jafk Market Wizards books.
It is a higher-level, more strategic text that covers its financial subject matter in detail and from multiple angles. Yet it is not dry or boring either. Schwager’s writing style is interesting and conversational, employs many analogies and examples to convey meaning, and frequently touches on real investor experiences to drive points home.
There is more than just investment mythbusting going on here. A thread of clear strategic thinking unifies the entire work. This book deserves a five star rating. Serious individual investors and speculators, fund managers and CTAs, and even financial markets regulatory personnel may benefit from the insights presented in this book. Aug 21, InvestingByTheBooks. I was excited when I first heard about this book. This is for two reasons.
A new book from Jack Schwager is always something to look forward to. He has done the Investment Management industry tremendous service through his educational and entertaining in-depth interviews with knowledgeable, passionate money managers. These interviews make it obvious to me, that the market is not efficient if you have a well thought-out investment philosophy, a coherent process, strong work ethics and discipline.
Few are more appropriate for this kind of analysis than Schwager. Some stated misconceptions are quite obvious to the experienced investor, e.
But the discussions on the misconceptions are usually straightforward and logical. I doubt an experienced investor would disagree with the conclusions. For example, instead of just listing and discussing hidden risks, he could have tried to quantify their importance and occurrence.
It is a bit sad because I believe Schwager, with his potential, had a golden opportunity to write a new Investment Classic with this great idea and missed it.
An advanced study of market truths based on market realities and long-term price action instead of theories from academia based on artificial assumptions is still very much in demand. I cannot help being annoyed in my suspicion that Schwager needed to meet a strict deadline or something similar.
Market Sense and Nonsense : How the Markets Really Work (and How They Don’t)
The setup of the book is somewhat ad-hoc, too. It consists of three parts: The part on hedge funds does have its merits, especially the more advanced chapters, and it could very well have made a book on its own. More focus on the stated purpose would have enhanced my jonsense of the book.
If I have been too harsh in my critique, it is because of my high expectations of a favorite author. There are several qnd that caught my attention, e. I quickly reread the part on Portfolio Matters. Also, almost anyone can learn from Schwager how to evaluate a portfolio manager including assessing his performance and risk taking. Schwager summarizes his book with 32 Investment Observations.
There is lots of market wisdom here to assimilate. Despite some objections to this book, I still regard Schwager to be one of the most able professionals in our industry. I will read his next book, too. Jun 19, Jacob rated it really liked it Shelves: Not exactly what I expected, but it’s quite good. This is more a collection of things the author wants to say about markets that go against prevailing “wisdom”. It’s a bit dry, but Schwager is brief, makes his point, and moves on so it stays interesting.
And by “interesting”, I mean if you care about reading an argument regarding why hedge funds are less risky than equity funds and moving promptly into a discussion of why leverage doesn’t necessarily increase risk. That should tell you almost ev Not exactly what I expected, but it’s quite good. That should tell you almost everything you need to know about whether you want to read this.
Market Sense and Nonsense: How the Markets Really Work (and How They Don’t) [Book]
nohsense For the few of you who are still reading my review, the surprise here is that only a third of the book is about markets and risk how past returns can be misguiding, mismeasuring risk is worse than not measuring it at all, volatility does not mean what you want it to mean, and the correct uses of correlation. Another third is about hedge funds how they are often lower risk than equity funds and how managed accounts can be a very consumer-friendly versionand the last third about portfolio building hint: To someone who actively chooses and manages their investments, it’s extremely useful.
Nothing is always a good idea. I need to know why it works, and in what conditions, and what conditions it doesn’t work well for!
Nov 07, Snse rated it liked it. Some good stuff but also too much self serving propaganda for the hedge fund industry. A supreme rubbish book. It’s a book filled with jibber jabber about technicalities in the markets and performances thereof. It does have a decent cover nonssnse. Feb 24, Andrew Pratley rated it really liked it. Very valuable book full of insights that are clearly explained.
It has given me much food for thought. I imagine that in future that I will be consulting its pages from time to time.
It is not a an easy read. The subject matter will be somewhat dry for marrket. If, however, you contemplating investing some money then it is a good place if not to start but is certainly worth a visit at the early stages. Aug 17, Jas rated it really liked it. Started a little slow for me. But excellent info about investments.
Really helps to understand how hedge investing works.