Reading minds and markets minimizing risk and maximizing returns in a volatile global marketplace

223 Pages·2009·1.015 MB·English

by  Ablin, Jack;McGee, Suzanne

Reading Minds
and Markets
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Reading Minds
and Markets
Minimizing Risk and Maximizing Returns
in a Volatile Global Marketplace
Jack Ablin
Chief Investment Officer,
Harris Private Bank
with Suzanne McGee
Contributing Editor, Barron’s
Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Executive Editor: Jim Boyd
Editorial Assistants: Myesha Graham and Pamela Boland
Development Editor: Russ Hall
Operations Manager: Gina Kanouse
Senior Marketing Manager: Julie Phifer
Publicity Manager: Laura Czaja
Assistant Marketing Manager: Megan Colvin
Cover Designer: Roberto de Vicq de Cumptich
Managing Editor: Kristy Hart
Project Editor: Betsy Harris
Copy Editor: Keith Cline
Proofreader: Williams Woods Publishing Services
Senior Indexer: Cheryl Lenser
Compositor: Jake McFarland
Manufacturing Buyer: Dan Uhrig
©2009 by Pearson Education, Inc.
Publishing as FT Press
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Printed in the United States of America
First Printing June 2009
ISBN-10: 0-13-235497-7
ISBN-13: 978-0-13-235497-4
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I dedicate this book to LeeAnn,
Elise, Emily, and Lynne Ablin.
—Jack
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Contents
Chapter 1 The Year of Investing Dangerously . . . . . . . .1
Chapter 2 The World of Global Macro . . . . . . . . . . . . .11
Chapter 3 Exploit Your Edge; Eliminate Your
Weakness I—Beating the Street . . . . . . . . . .27
Chapter 4 Exploit Your Edge; Eliminate Your
Weakness II—Battling Yourself . . . . . . . . . .41
Chapter 5 Identifying Metrics . . . . . . . . . . . . . . . . . . . .59
Chapter 6 The Five Factors: Putting
Data to Work . . . . . . . . . . . . . . . . . . . . . . . . .81
Chapter 7 The First Factor: Momentum—
Befriending the Trend . . . . . . . . . . . . . . . . . .97
Chapter 8 The Second Factor: The Economy—
Headwind or Tailwind for Stocks? . . . . . . .115
Chapter 9 The Third Factor: Liquidity—
Follow the Money . . . . . . . . . . . . . . . . . . . .133
Chapter 10 The Fourth Factor: Psychology—
Greed Versus Fear . . . . . . . . . . . . . . . . . . . .153
Chapter 11 The Fifth Factor: Fundamentals
and Valuation . . . . . . . . . . . . . . . . . . . . . . . .171
Chapter 12 Putting It Together . . . . . . . . . . . . . . . . . . .189
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203