Conquering Stock Market Hype

by CAMPBELL ALLAN B.

• ISBN13: 9780071437073
• ISBN10: 007143707X
• Edition: 1st
• Format: Paperback
• Copyright: 2004-06-01
• Publisher: McGraw-Hill

Summary

Reliable guidance for investors who are reluctant to get back into the market Millions of investors burned by the crashes and spikes of today's stock market are staying on the sidelines, and it's costing them a fortune. Conquering Stock Market Hype explains to skittish investors what is really going on, why markets are safer than they look, and how investors can take full advantage of stock market profits without once again exposing themselves to undue risk. Nonthreatening and easy to understand, Conquering Stock Market Hype distills wide-ranging and detailed research and knowledge into a package that is both accessible and reassuring. Investors will value its factual and straightforward explanations of: Strategies for recognizing market tops and bottoms Which types of investments are best for novice investors Signals that the market is overbought or oversold

Author Biography

Allan Campbell, C.F.A. (Eastampton Township, NJ) is chief investment officer of Daiwa Asset Management (America). A former portfolio manager for ABD International Management (a subsidiary of Dresdner Bank), Campbell also managed Value Line’s Strategic Asset Management Fund.

Table of Contents

Preface	p. ix
Acknowledgments	p. xiii
Recognize When the Bell Has Rung
Listening for the Bell	p. 3
The Paradox	p. 4
They Do Ring A Bell at the Top ...	p. 11
Bubbles	p. 11
The United States: The Roaring Twenties	p. 12
Japan: The Late Eighties	p. 14
Emerging Markets: The Nineties	p. 16
The United States Again: The Late Nineties	p. 20
The Psychology of Bubbles	p. 25
Hearing the Bell at the Top	p. 28
... And at the Bottom	p. 29
Six Crises	p. 29
The Psychology of Market Bottoms	p. 40
How to Recognize a Market Bottom	p. 42
The Up-and-Down Stock Market	p. 45
Is the Market Really Efficient?	p. 45
What Prevents Market Efficiency?	p. 48
How to Tell Whether the Stock Market is Fairly Valued	p. 55
Risk and Reward	p. 55
Pizza Parlors or Stocks?	p. 56
A Simple Tool for Valuing the Stock Market	p. 59
You Say You Don't Trust Reported Earnings?	p. 68
The Fed Model	p. 71
Yield Curve Analysis	p. 73
Steps to Take After the Bell has Rung
Building An Investment Portfolio for the Long Haul	p. 79
Investment Plans	p. 80
If Not Stocks, Then What?	p. 83
Choosing Your Asset Mix	p. 88
A Good Way to Buy Stocks	p. 96
Which Index?	p. 98
Do-It-Yourself Index Funds: Spiders, Cubes, Diamonds, and Vipers	p. 101
Monitoring Your Portfolio	p. 104
Beyond Plain Vanilla	p. 107
Active Funds Versus Index Funds	p. 107
Growth Funds and Value Funds	p. 111
Equity Income Funds	p. 112
Sector Funds	p. 114
International Funds	p. 118
Small- and Mid-Cap Funds	p. 124
High-Yield Bond Funds	p. 128
Socially Responsible Funds	p. 128
Balanced, Life Cycle, and Asset Allocation Funds	p. 131
Convertible Funds	p. 135
Gold Funds	p. 136
Real-World Choices	p. 139
Four Myths that Could Keep You Out of the Market	p. 147
Wall Street Strategists Will Tell You When to Get Back in the Market	p. 147
It's Best to Wait Until the Investment Outlook Is Clear Before Investing in Stocks	p. 148
Real Estate Is Always a Better Investment than Stocks	p. 151
Bonds Are Safe	p. 157
Eight Steps Not to Take After the Bell Has Rung	p. 161
Market Timing	p. 161
Wall Street Research	p. 162
Charting	p. 165
Day Trading	p. 165
IPO Opportunities	p. 167
Overdiversification	p. 169
Patriotic Investing	p. 169
Buying on Margin	p. 170
It's Never Too Early to Save for Retirement	p. 173
How Much Money Will I Need to Retire?	p. 173
How Am I Doing?	p. 177
Will Social Security Still Be Around When I Retire?	p. 180
Epilogue: Bringing It Together	p. 183
Summary of 2003 Tax Law Changes	p. 185
Tax-Deferred Savings Plans	p. 189
College Savings Plans	p. 193
Largest Index Funds and ETFs	p. 197
Glossary: What Wall Street Really Means	p. 201
Index	p. 221
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