Markets Never Forget (But People Do) How Your Memory Is Costing You Money--and Why This Time Isn't Different

by Fisher, Kenneth L.; Hoffmans, Lara W.

• ISBN13: 9781118091548
• ISBN10: 111809154X
• Edition: 1st
• Format: Hardcover
• Copyright: 2011-11-08
• Publisher: Wiley

Summary

History repeats itself, a reminder and mantra for post-Great Recession investors Markets Never Forget (But People Do) sets out to correct a major misconception: that the new investment era in which the market now finds itself is unlike anything we've ever seen before. Bestselling author Ken Fisher revisits the past to prove that history is simply repeating itself, that what is to come is no different to what has come before it. There's nothing "new" about the current economic period, as history has proved that there is always a resurgence in market activity following a recession. With the help of this book, smart investors can spot the trends and patterns that will enable them to thrive in the months and years to come. With the Great Recession technically over, investors are bracing themselves for the "New Normal," an investment period unlike any before with massive long-term unemployment and a stagnant economy, but this is not borne out by market history Pundits and media analysts have generated a mass hysteria about the so-called "new" investment era following the 2008 market crash, but the old rules still do apply A walk through the past shows that history does, indeed, repeat itself and that we can find patterns (and refuge) in historical cycles to see how best to prepare for the future Co-written by Ken Fisher, CEO of Fisher Investments, which has one of the largest client outreach programs in the country Every one of the Fisher's previous books have ranked on the Wall Street Journal and New York Times bestseller lists In this exciting new book, Fisher does the legwork for investors everywhere, identifying similarities and trends from past booms/bust cycles in order to guide them safely through to the other side.

Author Biography

Ken Fisher is best known for his prestigious "Portfolio Strategy" column in Forbes magazine, where his over 27-year tenure of high-profile calls makes him the fourth longest-running columnist in Forbes's 90-plus year history. He is the founder, Chairman and CEO of Fisher Investments, an independent global money management firm managing tens of billions for individuals and institutions globally. Fisher is ranked #252 on the 2010 Forbes 400 list of richest Americans, and #736 on the 2011 Forbes global billionaires list. In 2010, Investment Advisor magazine named him among the 30 most influential individuals of the last three decades. Fisher has authored numerous professional and scholarly articles, including the award-winning "Cognitive Biases in Market Forecasting." He has also published seven previous books, including New York Times and Wall Street Journal bestsellers, The Only Three Questions That Count, The Ten Roads to Riches, How to Smell a Rat and Debunkery, all published by Wiley. Fisher has been published, interviewed and/or written about in many major American, British and German finance or business periodicals. He has a weekly column in Focus Money, Germany's leading weekly finance and business magazine.

Lara Hoffmans is a content manager at Fisher Investments, managing editor of MarketMinder.com, a regular contributor to Forbes.com and co-author of the bestsellers, The Only Three Questions That Count, The Ten Roads to Riches, How to Smell a Rat and Debunkery.

Table of Contents

Preface	p. ix
Acknowledgments	p. xvii
The Plain-Old Normal	p. 1
Yes Sir, Sir John	p. 1
The Normal Normal	p. 5
The Jobless Recovery	p. 14
The Always Feared, Rarely Seen Double Dip	p. 23
Fooled by Averages	p. 31
Bull Markets Are Inherently Above Average	p. 32
Viva the V	p. 36
Normal Returns Are Extreme, Not Average.	p. 47
The Pause That Refreshes (and Confuses)	p. 49
Getting Average Returns Is HardùReally Hard	p. 53
Volatility Is Normal-and Volatile	p. 57
What the Heck is Volatility?	p. 58
Volatility Is Volatile	p. 61
The Daily Grind	p. 65
Stocks Are Less Volatile Than Bonds?	p. 67
Economic VolatilityùAlso Normal	p. 69
Volatility Isn't Inherently Bad	p. 71
Never a Dull Moment	p. 74
Secular Bear? (Secular) Bull!	p. 81
Seeing the World Through Bear-Colored Glasses	p. 82
Two Secular Bear Markets?	p. 84
StocksùUp Vastly More Than Down	p. 90
Debt and Deficient thinking	p. 101
Deficits Aren't Bad, but Surpluses Will Kill You	p. 105
The History of Big Government Debt	p. 110
Just Who Is at Default Here?	p. 116
Long-Term Love and Other Investing Errors	p. 123
No One Category Is Best for All Time	p. 124
Long-Term Love Is Like Long-Term ForecastingùBoth Wrong	p. 129
It's Still Heat Chasing Even When It Seems Safe	p. 134
Use History to Your Advantage	p. 146
Poli-Ticking	p. 151
Enter the Ideology-Free Zone	p. 152
Your Party Isn't Better	p. 153
Presidents and Risk Aversion	p. 155
Perverse InverseùIt's Four and One	p. 160
Poli-Tics Go Global	p. 170
Poli-Tics Versus Entrepreneurs	p. 172
It's (Always Been) a Global World, After All	p. 177
It's Always Been a Small World	p. 179
Seeing the World Right	p. 186
Conclusion	p. 194
Appendix	p. 197
Notes	p. 201
Index	p. 211
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