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Books & Resources Proven techniques for leading- instead of following fast changing markets
Why has there been a series of bubbles in technology stocks, home prices, financial stocks, and commodities?
How can investors spot such bubbles and invest to avoid large losses and even profit from them?
What causes long-term bull and bear markets?
Why do successful investment strategies and signals suddenly stop working?
Why do most investors earn lower returns than they should?
Bob answers these and other important questions. Readers learn to distinguish a bubble from a bull market. They know that these cycles are inevitable and repeated and why. This knowledge equips them to reduce exposure to risk when investors are extremely optimistic and pushing prices to unsustainable highs. They also learn to spot periods of extreme pessimism when prices are pushed too low.
A popular saying among investors is, "The most dangerous sentence in investing is: 'This time it is different.'" But things always are different. Cycles and circumstances never repeat exactly. The informed, successful investor learns to distinguish between things and relationships that do not change and those that do.
This volume explains the investment philosophy that underlies the strategies and recommendations in Retirement Watch. Readers will learn how Bob was able to warn investors away from the technology stock bubble in the late 1990s, recommend reducing exposure to real estate investment trusts in January 2005, hold only the safest fixed income investments and hedge stock market exposure as early as 2006. Readers also will understand why Bob will recommend a return to riskier investments when the time arrives.
One key to investing success is to think like a fox, not like a hedgehog. Bob explains why investment legends such as Warren Buffett and Steven Cohen are more like foxes and why the managers of failed hedge fund Long-Term Capital Management thought like hedgehogs. One of Bob's key points is that popular investment strategies have the characteristics of hedgehogs and do not serve investors well. Bob explains how individual investors can use the fox-like strategies used for decades by sophisticated and wealthy investors.
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