The Only Three Questions That Count Investing by Knowing What Others Don't

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Edition: 1st
Format: Hardcover
Pub. Date: 2006-12-11
Publisher(s): Wiley
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Summary

The Only Three Questions That Count is the first book to show you how to think about investing for yourself and develop innovative ways to understand and profit from the markets. The only way to consistently beat the markets is by knowing something others don't know. This book will show you how to do just that by using three simple questions. You'll see why CNBC's Mad Money host and money manager James J. Cramer says, "I believe that reading his book may be the single best thing you could do this year to make yourself a better investor.In The Only Three Questions That Count, Ken Fisher challenges the conventional wisdoms of investing, overturns glib theories with hard facts, and blows up complacent beliefs about money and the markets. Ultimately, he says, the key to successful investing is daring to challenge yourself and whatever you believe to be true. Packed with more than 100 visuals, usable tools, and a glossary, The Only Three Questions That Count is an entertaining and educational experience in the markets unlike any other, giving you an opportunity to reap the huge rewards that only the markets can offer.

Author Biography

Ken Fisher is best known for his prestigious "Portfolio Strategy" column in Forbes magazine, where his twenty-two-year tenure of high-profile calls makes him the fifth longest-running columnist in Forbes' eighty-nine-year history. He is also the founder, Chairman, and CEO of Fisher Investments, an independent global money management firm with over $30 billion in assets. Consistently ranked the most accurate published market forecaster by third-party CXO Advisory Group, Fisher was ranked 297 on the 2006 Forbes 400 list of richest Americans. He is the award-winning author of numerous scholarly articles and has published three previous major finance books including 1984's bestselling stock market book, Super Stocks. He also writes frequently for other business and financial publications, including a regular column for Bloomberg Money in Britain.

Jennifer Chou graduated from the University of California with a BS in finance. She is a Research Analyst of global capital markets and macroeconomics at Fisher Investments.

Lara Hoffmans graduated from the University of Notre Dame with a BA in theatre. She is a Research Analyst at Fisher Investments.

Table of Contents

Acknowledgments ix
Foreword xiii
Preface xix
Who Am I to Tell You Something That Counts?
xix
Idiots and Professionals: Oh, but I Repeat Myself
xxii
Because Mr. Crafty, It's Not a Craft
xxvi
It's All Latin to Me—Starting to Think like a Scientist
xxix
The Only Three Questions That Count
xxx
1 Question One: What Do You Believe That Is Actually False? 1(36)
If You Knew It Was Wrong, You Wouldn't Believe It
1(7)
The Mythological Correlation
8(12)
Always Look at It Differently
20(7)
When You Are Really, Really Wrong
27(10)
2 Question Two: What Can You Fathom That Others Find Unfathomable? 37(44)
Fathoming the Unfathomable
37(1)
Ignore the Rock in the Bushes
38(2)
Discounting the Media Machine and Advanced Fad Avoidance
40(8)
The Shocking Truth about Yield Curves
48(15)
What the Yield Curve Is Trying to Tell You
63(9)
The Presidential Term Cycle
72(9)
3 Question Three: What the Heck Is My Brain Doing to Blindside Me Now? 81(38)
It's Not Your Fault—Blame Evolution
81(6)
Cracking the Stone Age Code—Pride and Regret
87(18)
The Great Humiliator's Favorite Tricks
105(2)
Get Your Head Out of the Cave
107(12)
4 Capital Markets Technology 119(46)
Building and Putting Capital Markets Technology into Practice
119(3)
It's Good while It Lasts
122(6)
Forecast with Accuracy, Not like a Professional
128(12)
Better Living through Global Benchmarking
140(25)
5 When There's No There, There! 165(28)
Johns Hopkins, My Grampa, Life Lessons, and Pulling a Gertrude
165(6)
In the Center Ring—Oil versus Stocks
171(14)
Sell in May because the January Effect Will Dampen Your Santa Claus Rally Unless There Is a Witching Effect
185(8)
6 No, It's Just the Opposite 193(42)
When You Are Wrong—Really, Really, Really Wrong
193(9)
Multiplier Effects and the Heroin-Addicted Apple iPod Borrower
202(11)
Let's Trade This Deficit for That One
213(9)
The New Gold Standard
222(13)
7 Shocking but True 235(38)
Supply and Demand...and That's It
235(22)
Weak Dollar, Strong Dollar—What Does It Matter?
257(16)
8 The Great Humiliator and Your Stone-Age Brain 273(38)
That Predictable Market
273(9)
Anatomy of a Bubble
282(11)
Some Basic Bear Rules
293(11)
What Causes a Bear Market?
304(7)
9 Putting It All Together 311(48)
Stick with Your Strategy and Stick It to Him
311(13)
Four Rules That Count
324(19)
Finally! How to Pick Stocks That Only Win
343(9)
When the Heck Do You Sell?
352(7)
Conclusion 359(8)
Transformationalism
360(7)
Appendix A: U.S. Equity Total Returns 1830 to 1925 367(2)
Appendix B: S&P 500 Composite Returns 369(6)
Appendix C: Simulated Technology Returns 375(2)
Appendix D: Nasdaq Composite Returns 377(4)
Appendix E: U.K. Stock Market Total Returns 381(4)
Appendix F: U.K. Stock Market (FTSE All-Share) Total Returns 385(4)
Appendix G: Germany Stock Market Returns 389(4)
Appendix H: Germany Stock Market (DAX) Total Returns 393(4)
Appendix I: Japan Stock Market Total Returns 397(4)
Appendix J: Japan Stock Market (TOPIX) Total Returns 401(4)
Appendix K: Fisher Investments Global Total Return Performance 405(2)
Appendix L: Ten-Year History of the Forbes Report Card 407(2)
Appendix M: The United Deficits: Data 409(2)
Notes 411(10)
Glossary 421(10)
Index 431

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