Conquering Stock Market Hype

by Allan Campbell

Overview

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

Product Details

ISBN-13:	9780071446006
Publisher:	McGraw Hill LLC
Publication date:	05/22/2004
Sold by:	Barnes & Noble
Format:	eBook
Pages:	192
File size:	2 MB

About the Author

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

Table of Contents

	Preface	ix
	Acknowledgments	xiii
Part I	Recognize When the Bell Has Rung
Chapter 1	Listening for the Bell	3
	The Paradox	4
Chapter 2	They Do Ring A Bell at the Top ...	11
	Bubbles	11
	The United States: The Roaring Twenties	12
	Japan: The Late Eighties	14
	Emerging Markets: The Nineties	16
	The United States Again: The Late Nineties	20
	The Psychology of Bubbles	25
	Hearing the Bell at the Top	28
Chapter 3	... And at the Bottom	29
	Six Crises	29
	The Psychology of Market Bottoms	40
	How to Recognize a Market Bottom	42
Chapter 4	The Up-and-Down Stock Market	45
	Is the Market Really Efficient?	45
	What Prevents Market Efficiency?	48
Chapter 5	How to Tell Whether the Stock Market is Fairly Valued	55
	Risk and Reward	55
	Pizza Parlors or Stocks?	56
	A Simple Tool for Valuing the Stock Market	59
	You Say You Don't Trust Reported Earnings?	68
	The Fed Model	71
	Yield Curve Analysis	73
Part II	Steps to Take After the Bell has Rung
Chapter 6	Building An Investment Portfolio for the Long Haul	79
	Investment Plans	80
	If Not Stocks, Then What?	83
	Choosing Your Asset Mix	88
	A Good Way to Buy Stocks	96
	Which Index?	98
	Do-It-Yourself Index Funds: Spiders, Cubes, Diamonds, and Vipers	101
	Monitoring Your Portfolio	104
Chapter 7	Beyond Plain Vanilla	107
	Active Funds Versus Index Funds	107
	Growth Funds and Value Funds	111
	Equity Income Funds	112
	Sector Funds	114
	International Funds	118
	Small- and Mid-Cap Funds	124
	High-Yield Bond Funds	128
	Socially Responsible Funds	128
	Balanced, Life Cycle, and Asset Allocation Funds	131
	Convertible Funds	135
	Gold Funds	136
	Real-World Choices	139
Chapter 8	Four Myths that Could Keep You Out of the Market	147
Myth #1	Wall Street Strategists Will Tell You When to Get Back in the Market	147
Myth #2	It's Best to Wait Until the Investment Outlook Is Clear Before Investing in Stocks	148
Myth #3	Real Estate Is Always a Better Investment than Stocks	151
Myth #4	Bonds Are Safe	157
Chapter 9	Eight Steps Not to Take After the Bell Has Rung	161
	Market Timing	161
	Wall Street Research	162
	Charting	165
	Day Trading	165
	IPO Opportunities	167
	Overdiversification	169
	Patriotic Investing	169
	Buying on Margin	170
Chapter 10	It's Never Too Early to Save for Retirement	173
	How Much Money Will I Need to Retire?	173
	How Am I Doing?	177
	Will Social Security Still Be Around When I Retire?	180
	Epilogue: Bringing It Together	183
Appendix A	Summary of 2003 Tax Law Changes	185
Appendix B	Tax-Deferred Savings Plans	189
Appendix C	College Savings Plans	193
Appendix D	Largest Index Funds and ETFs	197
	Glossary: What Wall Street Really Means	201
	Index	221