People have been trying to predict financial markets since markets existed. Chapter 20 of Wilmott’s book takes an honest, slightly skeptical tour through the methods traders use. The verdict? Mixed at best. And Wilmott is not shy about saying so.
Chapter 5 of Stock Market Cash Flow (ISBN: 978-1-937832-48-3) by Andy Tanner moves into the second pillar: technical analysis. If fundamental analysis tells you the strength of a company, technical analysis tells you the strength of the market for that company’s stock.
Chapter 6 of A Random Walk Down Wall Street is where Malkiel stops being polite about technical analysis. He opens with a Gilbert and Sullivan quote: “Things are seldom what they seem. Skim milk masquerades as cream.”
Chapter 5 kicks off Part Two of the book: “How the Pros Play the Biggest Game in Town.” On a typical trading day, shares worth hundreds of billions change hands. Fresh Harvard Business School grads pull $200,000 salaries in good years. The top money managers handle over a trillion dollars in hedge fund assets.
In Chapter 3 of Stock Market Cash Flow (ISBN: 978-1-937832-48-3), Andy Tanner finally lays out the big framework. The four pillars of investing. Everything you’ll ever learn about stock investing fits into one of these four buckets. And once you see them, you can’t unsee them.