Know these names? The Way to Wealth, The Intelligent Investor, One up on Wall St, Stocks for the Long Run ? They’re all books that redefined investing for their time.
But they may be headed for the history section.
A new little book is threatening to turn all that sage advice on its head.
We’re talking about Vitaliy Katsenelson’s “The Little Book of Sideways Markets.” Katsenelson says this decade’s big money won’t get made by riding bull markets, holding on to quality companies, or preparing for The Black Swan. Source: CNBC
Short URL: http://ContrarianEdge.com/?p=2743
Anonymous
Vitaly, your articles are usually very thought p
Anonymous
Thanks for your great articles – always stimulates the ole grey cells
However, the CNBC hype really was a bit too much when it talked about relegating Intelligent Investor, etc. to the history section. The quality of your writing is good enough not to need such bubblevision puffery.
You highlight two very important issues in one phrase : “investors pay back in declining P/Es for the excess returns of the preceding bull market.” That payback is as much emotional as financial – rising PEs make us feel like stock market geniuses, thus accelerating the bull run. On the way down, very, very few people bother to look at PE compression, now blaming their losses on shorts, bashers, hedge funds… anything but payback time!
One of my favorite PE expansion/compression examples is KO – ever since glory boy Goizueta, it’s PE’s been getting scrunched in payback.
