Peter Mallouk

The 5 Mistakes Every Investor Makes and How to Avoid Them (eBook, PDF)

Getting Investing Right

• Format: PDF

Produktbeschreibung

This book, from New York Times best-selling author Peter Mallouk, will help you avoid the mistakes that stand in the way of investment success! A reliable resource for investors who want to make more informed choices, this book steers readers away from past investment errors and guides them in the right direction. The Five Mistakes Every Investor Makes and How to Avoid Them, Second Edition, focuses on what investors do wrong, so you can avoid these common errors and set yourself on the right path to success. In this comprehensive reference, you'll learn to navigate the ever-changing variables and market dilemmas that can make investing a risky and daunting endeavor. In this Second Edition, Peter Mallouk shares new investment techniques, an expanded discussion of the importance of disciplined investment management, and updated advice on avoiding common pitfalls. In this updated Second Edition, you'll find a workable, sensible investment framework that shows you how to refrain from fighting the market, misunderstanding performance, and letting your biases and emotions get in the way of investing success. * Offers updated discussion and investment techniques to improve your performance in today's market conditions * Details the major mistakes made by professional and everyday investors, including fighting the market, overactive trading, and not having an endgame * Highlights the strategies and mindset necessary for navigating ever-changing variables and market dilemmas * Includes useful investment techniques and discusses the importance of discipline in investment management The Five Mistakes Every Investor Makes and How to Avoid Them, Second Edition leads you in the right investing direction and provides a roadmap that you can follow for a lifetime.

---

Dieser Download kann aus rechtlichen Gründen nur mit Rechnungsadresse in D ausgeliefert werden.

Produktdetails

• Verlag: John Wiley & Sons
• Erscheinungstermin: 30. April 2021
• Englisch
• ISBN-13: 9781119794356
• Artikelnr.: 61926132

Autorenporträt

PETER MALLOUK is President and Chief Investment Officer of Creating Planning and its affiliated companies. Peter's companies provide comprehensive wealth management services to their clients, including investment management, financial planning, charitable planning, retirement plan consulting, and tax and estate planning services.

Inhaltsangabe

Preface xiii

Acknowledgments xv

About the Author xvii

Legal Disclosure xix

Introduction The Market Wants to Be Your Friend xxi

Mistake #1 Market Timing 1

The Idiots 5

Why Is It So Hard to Beat the Market? 6

Efficient Markets 7

The Evidence (Research and Stuff) 8

The Media Get It Wrong, Over and Over Again 8

Economists Get It Wrong, Over and Over Again 9

Investment Managers Get It Wrong, Over and Over Again 14

Newsletters Get It Wrong, Over and Over Again 17

Your Buddy 18

Strategies That Don't Sound Like Market Timing but Are Market Timing--Oh, and They Don't Work Either 19

Asset-Class Rotation 19

Tactical Asset Allocation 20

Style Rotation 20

Sector Rotation 20

What Smart Investors Have to Say on Market Timing 20

Knowing All This, Why Would Anyone Market Time? 21

Corrections 22

Bear Markets: An Overview 26

Bear Markets Happen for Different Reasons, but the Outcome Is Always the Same 27

Bear Markets Are Not Predictable 28

When Bear Markets "Turn," They Make People on the Sidelines Look Silly 30

The Market Is Volatile--Get Used to It 30

You Can't Wait for Consumers to Feel Good 31

Learning to Accept the Bear Markets 33

Miscalculating the Risk of Market Timing 34

But What If I Am Perfect? 34

Lump-Sum Investing versus Dollar-Cost Averaging 36

Learning to Fly 40

Avoiding Mistake #1--Market Timing 41

Mistake #2 Active Trading 43

The History of Active Trading 44

Active Investment Managers Lose to Indexing 45

Newsletters Lose to Indexing 45

Active Mutual Funds Lose to Indexing 45

Survivor Bias (a.k.a. Mutual Fund Performance Is Even Worse Than the Data Suggests) 47

What About the Winners, Huh? What About the Winners?! 48

Hedge Funds Lose to Indexing 51

Endowments--Misperception of Performance 56

Venture Capital (Sounds Sexy but Usually a Dog) 57

The Taxman Cometh (a.k.a. Dear Goodness, It Gets Worse) 59

Portfolio Activity Hurts Performance 59

But Doesn't Active Management

Work in a Down Market? 60

Why Indexes Win 61

But Indexing Results in Average Returns 62

S&P 500, Here I Come! 62

Avoiding Mistake #2--Active Trading 64

Mistake #3 Misunderstanding Performance and Financial Information 65

Misunderstanding #1--Judging Performance in a Vacuum 65

Misunderstanding #2--Believing the Financial Media Exists to Help You Make Smart Decisions (a.k.a. the Media Is Killing You) 67

Misunderstanding #3--Believing That the Market Cares About Today 71

Misunderstanding #4--Believing an All-Time High Means the Market is Due for a Pullback 74

Misunderstanding #5--Believing Correlation Equals Causation 77

October Is The Worst Month to Invest 77

Sell in May and Go Away 78

Misunderstanding #6--Believing Financial News Is Actionable 79

Misunderstanding #7--Believing Republicans Are Better for the Market Than Democrats 80

Misunderstanding #8--Overestimating the Impact of a Manager 82

Misunderstanding #9--Believing Market Drops Are the Time to Get Defensive 83

Avoiding Mistake #3--Misunderstanding Performance and Financial Information 84

Mistake #4 Letting Yourself Get in the Way 85

Fear, Greed, and Herding 85

The Overconfidence Effect 89

Confirmation Bias 93

Anchori