http://worldcat.org/entity/work/id/800964389

Buy the rumor, sell the fact 85 maxims of investing and what they really mean

"Buy on Monday, sell on Friday." "Don't catch falling knives." "The trend is you friend." Wall Street, and the investing world in general, is filled with adages, epigrams, maxims, and the like. Some of these are helpful, some are plain wrong, and many are misunderstood or misused. Investors following these cute sayings and pithy "insights" are doomed to lose their investing capital unless they know exactly what these sayings mean and how they are applied. Forbes senior writer Michael Maiello sets about explaining these myths for what they are and are not. They can serve as guideposts to assist an investor, but they should never be taken as gospel. The author discusses each maxim and breaks down the concept behind it, detailing its factual support or lack of support, and when it should be used and when ignored.; He covers: The contradictory: "The market always falls in December" supposedly because of selling off losers for tax purposes versus "There's always a Santa Claus rally" because institutions are engaged in year-end "window dressing." The inexact: "Bulls and bears make money, but hogs get slaughtered." One does one cross the line into hog territory? The no longer true: "The Dividend Law" hasn't worked since yields dropped in 1996. The silly: "The Superbowl Theory" that states that when an NFC team wins, the market goes up; when an AFC team wins, the market goes down. Oops, was that the Denver Broncos who won? Better create the "Elway exception." Each maxim is covered in a short chapter of 2 to 4 pages and the myths are gathered in logical groupings such as "Calendar Myths," "The Stock Market and the Fed," and "Wall Street Superstitions."; In addition, the author will offer an opening chapter about the thought and culture of today's Wall Street that will also include stories of towering figures of the past such as J.P. Morgan consulting an astrologer and Cornelius Vanderbilt holding seances in their search for investing guidance. The author will also touch briefly on maxims from areas such as bonds, real estate, insurance, and the economy in general that are all related to investing and finance. Buy the Rumor, Sell the Fact will be a useful tool that distinguishes between good and bad advice while being a fun read that exposes some of the more eccentric notions swirling around the Wall Street community.

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