When the Dow Breaks: Insights & Strategies for Protecting Your Profits in a Turbulent Market
Editorial Reviews
Amazon.com
In contrast to Wall Street's hold-forever theorists, author Donald Cassidy believes we can understand stock volatility, and, subsequently, dodge market downturns and capitalize on bargain-basement prices. Buying and "holding forever," writes Cassidy, "is like suggesting you wear the same clothing year-round despite known radical changes in temperature and snow depth." By learning the history of market patterns and understanding that emotions drive prices, he continues, rational investors can profit greatly from the mistakes of the masses.
Of course, predicting stock runs is easier said than done. Cassidy attempts to do so by charting market patterns from 1950 through the 1990s, profiling market and individual stock behavior at their peaks as well as their valleys. As for risky markets, he observes these patterns: "Two years or longer with no correction of at least 10 percent in the major averages; a long period of economic expansion already in place; large numbers of new companies going public." Cassidy, a senior research analyst for Lipper Inc., also pays special attention to the psychology of investing, especially that of dealing with a market on the brink of change. He cites internal factors (greed, ego, perfectionism) and external influences (media, friends, brokers) that influence emotions, and, ultimately, drive markets. Finally, he offers clever ways to manage taxes as investors--ideally historically aware, rational investors--shift their portfolios toward low-risk, high-reward results. --Rob McDonald
Book Description
Market-Hedging Strategies that Turn Paper Losses Into Real Profits! History proves it: Even the healthiest stock markets occasionally suffer sharp downturns. WHEN THE DOW BREAKS provides in-depth, step-by-step strategies to protect yourself against sudden drops by recognizing danger signals and selling near the top, then standing ready to take advantage of the mistakes of others by buying back in at lower levels. Respected veteran market analyst Donald L. Cassidy details how you can become a disciplined, rational investor, discovering the best times to buy and sell through your own research instead of second-hand rumors and hot tips. You will learn: Accurate signs that a downturn is; imminent--for either markets or individual stocks (Chapter 3) Value tests to identify and correct vulnerable points in your portfolio (Chapter 7); Professional asset allocation techniques for different stages in your life (Chapter 10); Strategies to manage your tax bite, while maintaining a low-risk/high-return asset mix (Chapter 12). Over your lifetime, sticking to the long-debated "Buy and Hold" strategy will net you only average or below-average returns. Are you willing to settle for that? WHEN THE DOW BREAKS shows you not only how to identify market tops (protecting your stocks against significant losses) but also how to identify market bottoms (buying back in at or near the cheapest possible price). This eye-opening book will immediately make you a seasoned, sophisticated investor--as you dramatically increase your stock market returns.
When the Dow Breaks: Insights & Strategies for Protecting Your Profits in a Turbulent Market
When the Dow Breaks: Insights & Strategies for Protecting Your Profits in a Turbulent Market,Donald L. Cassidy,Mcgraw-Hill,0071347682,Business & Economics,Business / Economics / Finance,Business/Economics,Finance,Handbooks, manuals, etc,Investment Finance,Investments,Investments & Securities,Investments & Securities - General,Investments & Securities - Stocks,Stock exchanges,Stocks,United States
Book Details:
Recommended Books