Dancing with Bears : Separating Wall Street from the Bull

by Yanis, Edward M.

• ISBN13: 9780595005802
• ISBN10: 0595005802
• Format: Paperback
• Copyright: 2000-01-01
• Publisher: Iuniverse Inc

Table of Contents

Preface	p. 1
Acknowledgements	p. 3
Introduction	p. 5
How The Y-Process Can Be Used To Increase Returns By Reducing Risk	p. 6
This Book Is Written For Three Levels Of Investors	p. 8
Accumulating Wealth Begins With Six Simple Tenets	p. 13
Taking Control Of Your Financial Future	p. 13
Set Specific Financial Goals
Make Investing A Regular Habit
Diversify Your Investments
How Risk Shy Are You?
Apply The "Time-Value Of Money" Concept To Your Investment Strategy
Opportunity-Cost: The First Cousin Of Time-Value Of Money
The Donoghue Risk Test	p. 33
For The Prudent Investor Is It Stocks Or Bonds?	p. 39
Stock Versus Bonds Description	p. 39
For The Prudent Investor, Use Yanis' First Principle of Investing: "Preservation of Capital with Realistic Returns"	p. 39
What Are The "Real Returns" Of Stocks And Bonds?	p. 40
Inflation Can Be Hazardous To Your Financial Wealth	p. 41
Stocks Are The Long-Term Winners	p. 43
The Risk Of Risk-Free Bonds	p. 43
What You Need To Know About Bonds	p. 44
Balancing Risk And Rewards	p. 45
The Relationship Between Price And Yield	p. 45
The Risks Of Bonds	p. 46
Treasuries: The Safest Bonds Of All	p. 46
Risk-Reducing Steps That You Should Take As A Bond Investor	p. 47
Mutual Funds--The Ideal Investment For Beginners	p. 51
Mutual Funds And What They Have To Offer	p. 51
Mutual Fund Costs--Loads, Fees, And Expenses	p. 54
Load Vs. No-Load Funds	p. 58
What is the fund's expense ratio?	p. 59
Advantages And Limitations Of Money Market Funds	p. 60
Index Funds: Buying The "Benchmark."	p. 61
The Psychology Of Investing	p. 71
Mistakes In Investing Decisions	p. 71
Over-Confidence	p. 72
Fear Of Loss	p. 73
Deep Regret Over Errors	p. 75
We Frequently Overlook "Opportunity Cost."	p. 76
Inability To Stick To An Investment Style And Strategy	p. 77
Listen To Just One Adviser	p. 80
Don't Diversify	p. 80
Fall In Love And Marry Your Stocks	p. 80
Buy Lousy Companies Cheap	p. 81
Not Paying Attention To Costs	p. 82
Don't Worry About Taxes	p. 82
Heed "Cold Calls."	p. 83
Get Caught Up In Wall Street's Hype	p. 83
Benchmarking: Going Beyond The SandP 500 Stock Index	p. 85
How Do You Find The Right Benchmark And Interpret Returns?	p. 85
All Indexes Are Not Created Alike	p. 86
Which Is The Best Stock Market Benchmark To Measure Market Performance?	p. 86
Dueling Benchmarks--Dow vs. SandP 500 Vs. Wilshire 5000	p. 87
Is It Possible To Profit From A Performance Difference Among The Three Indexes?	p. 88
Comparing Fund Performance With The Predominant Market Indexes	p. 90
Be Alert When Comparing Returns Of Popular Market Indexes With Fund Returns	p. 90
Many Funds Are Difficult To Classify	p. 91
Benchmarking Your Mutual Fund	p. 94
A "Watch List" Provides Alerts When A Portfolio Declines	p. 95
Why Indexing Makes Sense	p. 97
How Does Indexing Work?	p. 97
The Dominance Of Actively-Managed Funds	p. 98
Choosing The Right Mutual Fund	p. 99
The Stock Index-Fund Craze	p. 99
An Index Fund That Matches The Entire U.S. Market	p. 100
A Recent Development: Stock-Exchange Traded Funds	p. 101
Advantages Of Investing In Stock Exchange-Traded Funds	p. 103
Taking A Bite Out Of Your Retirement	p. 111
Introducing you to the Kodiac-grizzly	p. 112
Market Phases	p. 112
Is the present bear market barometer obsolete?	p. 112
Should a bear market be more than just a number?	p. 113
The mood swings of investor sentiment who are not Y-Process users	p. 114
The Bear's Bite	p. 115
The anguish and cost of following a bear "down the tubes."	p. 117
The Schools Of Strategic Investing	p. 119
The Elements of Successful Investing	p. 119
The School Of Fundamental Analysis	p. 121
The School Of Technical Analysis	p. 125
The School Of Efficient Markets	p. 135
The Anomalies Of The Efficient-market Theory	p. 143
The Worth Of The Efficient-market Theory	p. 147
Conclusions	p. 148
The Y-Process: A Stock Market Strategy For Sophisticated Investors	p. 151
Stock Market Forecasting	p. 151
Trend Following Moving Averages	p. 155
The Searching For The Optimum Y-Process Number	p. 157
The Y-Process At Work	p. 160
Why Does The Y-Process Work So Well?	p. 161
The Y-Process Managed SandP 500 Consistently Outperforms The Market	p. 165
Validating The Y-Process	p. 165
Summary Of 70 Years Of Backtesting Results	p. 170
Analyzing The Data Of Table 10.2	p. 169
Conclusions Drawn From 70 Years Of Backtesting	p. 173
Comparing The Y-Process With The Efficient-market Theory	p. 174
Can The Efficient-Market Theory Coexist With The Y-Process?	p. 176
Is There Another Way Out Of This Dilemma For Those Who Want To Keep Both The Efficient--Market Theory And The Y-Process?	p. 179
Getting Started	p. 183
Investors Entering The New Millennium May Be Wealthier But Many Won't Nearly Be All That Wiser	p. 183
Understanding And Profiting From Stock Exchange-traded Funds	p. 185
Taking Control Of Brokerage Commissions	p. 190
Optimizing Your Trade Order Type	p. 190
Stop Limit Orders Recommended For Y-Process Investors	p. 192
Effects Of Short-term Whipsaws On Y-Process Investors	p. 194
Stretch Your Gains: Reach For Higher Retruns	p. 197
Aiming For Higher Returns	p. 197
Strategy One. International Stock Exchange-Traded Funds From Amsterdam To Zurich	p. 198
Strategy Two. Investing In Niche (Sector) Funds	p. 200
Strategy Three. Buying On Margin	p. 205
Strategy Four. The "Market-Neutral Position."	p. 206
About the Author	p. 211
Glossary	p. 215
Comparison of annual total returns of a managed and unmanaged SandP500 Index for the 1940s and the weekly Y-Process numbers for 1940	p. 247
Comparison of annual total returns of a managed and unmanaged SandP500 Index for the 1950s and the weekly Y-Process numbers for 1950	p. 248
Comparison of annual total returns of a managed and unmanaged SandP500 Index for the 1960s and the weekly Y-Process numbers for 1960	p. 249
Comparison of annual total returns of a managed and unmanaged SandP500 Index for the 1970s and the weekly Y-Process numbers for 1970	p. 250
Comparison of annual total returns of a managed and unmanaged SandP500 Index for the 1980s and the weekly Y-Process numbers for 1980	p. 251
Comparison of annual total returns of a managed and unmanaged SandP500 Index for the 1990s and the weekly Y-Process numbers for 1990	p. 252
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