Market Sense and Nonsense

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. A compilation of the most insidious, fundamental investment errors the author has observed over his long and distinguished career in the markets Brings to light the fallacies underlying many widely held academic precepts, professional money management methodologies, and investment behaviors A sobering dose of real-world insight for investment professionals and a highly readable source of information and guidance for general readers interested in investment, trading, and finance Spans both traditional and alternative investment classes, covering both basic and advanced topics As in his best-selling Market Wizard series, Schwager manages the trick of covering material that is pertinent to professionals, yet writing in a style that is clear and accessible to the layman

Bestselling author, Jack Schwager, challenges the assumptionsat the core of investment theory and practice and exposes commoninvestor mistakes, missteps, myths, and misreadsWhen it comes to investment models and theories of how marketswork, convenience usually trumps reality. The simple fact is thatmany revered investment theories and market models are flatlywrong--that is, if we insist that they work in the real world.Unfounded assumptions, erroneous theories, unrealistic modelscognitive biases, emotional foibles, and unsubstantiated beliefsall combine to lead investors astray--professionals as well asnovices. In this engaging new book, Jack Schwager, bestsellingauthor of Market Wizards and The New Market Wizardstakes aim at the most perniciously pervasive academic preceptsmoney management canards, market myths and investor errors. Like somany ducks in a shooting gallery, Schwager picks them off, one at atime, revealing the truth about many of the fallacious assumptionstheories, and beliefs at the core of investment theory andpractice.* A compilation of the most insidious, fundamental investmenterrors the author has observed over his long and distinguishedcareer in the markets* Brings to light the fallacies underlying many widely heldacademic precepts, professional money management methodologies, andinvestment behaviors* A sobering dose of real-world insight for investmentprofessionals and a highly readable source of information andguidance for general readers interested in investment, trading, andfinance* Spans both traditional and alternative investment classescovering both basic and advanced topics* As in his best-selling Market Wizard series, Schwagermanages the trick of covering material that is pertinent toprofessionals, yet writing in a style that is clear and accessibleto the layman