Books that will help gain sanity in insane market - Part 2

Vitaliy Katsenelson's picture

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ChickenTeriyakiBoy's picture

hayek: capitalism and the historians

Renfield's picture

PS: I can't retrieve Part 1; calls up only a blank screen with a site address. Any chance of attaching the link in something more primitive like a PDF file?

Anonymous's picture

Jesse Livermore committed suicide. Typical trader who thinks they can beat random the market.

Jay's picture

I've read Atlas Shrugged and I enjoyed it, but IMO Rand's Capitalism: The Unknown Ideal is a much greater, and much more moving and convincing argument for capitalism.

jippie's picture

wasn't she Greenspan's mentor, who led him to believe that markets will always create the best outcome for society as a whole?

Remove all regulation?

I guess we saw where that led us.

In my opinion she's a nutjob. Living in her great theories that just don't apply to the real world when you apply them to selfish, greedy humans

Renfield's picture

Many thanx!! Very timely for me - I'm heading to the bookstore tomorrow. This printout will be in my hand when I go. Much appreciation to you.

Green Sharts's picture

This is a stock picker's market?  This is the furthest thing from a stock picker's market I've ever seen.  The correlation between asset classes and within asset classes is through the roof.  As Bob Rodriguez, a value investor with a great long-term track record in stocks and bonds says, "It's all one big trade."  That trade is Risk On or Risk Off.

A.  Risk On:  Dollar down, oil up regardless of supply/demand, industrial commodities up regardless of supply/demand, U.S. stocks up (the junkier and more highly leveraged the better), foreign stocks up even more in dollars, corporate bonds up (the junkier the better), treasury bonds typically decline in value though that correlation has broken down in recent months

B.  Everything the opposite of A.  Dollar up, treasuries up, virtually everything else down.

I believe the stock pickers (whether Graham/Dodd, Buffett, growth, momentum, any style you want to pick) who think they can pick a basket of stocks that will do OK if we have a reversal of the recent dollar trade are kidding themselves.  This market is not like 2000-2002 when tech/internet stocks and the big blue chips (GE, WMT, etc.) were wildly overvalued and small cap was dirt cheap, where good value investors (not including value frauds like Bill Miller) made a killing while the S&P was down 3 years in a row.  In 2008, any equity investor who was close to fully invested took a beating and I predict a repeat performance sometime in the next 6-12 months, if not quite as severe.

Anonymous's picture

To call Stalinist and post-Stalinist communism, socialism, is a joke. You need to read some more.

jedwards's picture

Market Wizards 1 and 2 are fantastic books that give insight into how real traders think.

putbuyer's picture

Hi VK,

What do you think about The Fourth Turning  by William Strauss, Neil Howe?

Anonymous's picture

Thanks for the list!

Have you read "More Than You Know" by Michael Mauboussin. Worth the read.

Vitaliy Katsenelson's picture

I have a few years ago, need to reread it.  Remember finding good insights in it.

ChickenTeriyakiBoy's picture

you must read a lot of crap investment books, too, in order to know that these are the good ones. at least dr johnson didnt move your cheese. 

in all seriousness i appreciate the recommendations. i dont read a lot of business literature, but your list seems discerning. im a big fan of fooled by randomness, myself. taleb's references have carried my reading into many new directions

Anonymous's picture

Thanks Vitaliy. What would you recommend if I want to get up to speed with the bond market and how the relates macroeconomically to other countries, treasury auctions and currencies. I get lost in the terminology when I read some of the posts on this site and others. Thanks again.

Vitaliy Katsenelson's picture

Sorry, cant think of any.