Tue, 6 November 2012
Famed writer and trader Jack Schwager returns to the podcast to speak with Michael Covel about his new book, "Market Sense and Nonsense: How the Markets Really Work (and How They Don't)", which is released today. For those that have had a pulse in the investment world in the last twenty or so years, you've surely crossed paths with Schwager's earlier works--especially the "Market Wizards" series. "Market Sense and Nonsense" aims to reveal why so many "tried and true" investment models and ideas might be flat out wrong. Schwager approaches these assumptions and beliefs about the market from the ground up and investigates which ideas hold up and which crumble under the pressure of closer scrutiny. Covel and Schwager discuss how Schwager was able to make "Market Sense and Nonsense" accessible to both professionals and laymen and touch on some of the subjects contained within: market fallacies and misconceptions; the idea of cable news "experts", and what would happen if you actually followed all of the picks made by people like Jim Cramer and other talking heads; comparing performance streams against each other, and why you have to consider more than just the number; volatility vs. risk; if coming to a good risk adjusted return is based more on a scientific approach or personal preference; leveraged ETFs; the fear of hedge funds; the idea of leverage and why much of "Market Sense and Nonsense" was built around trying to understand it; and why fund-to-fund managers putting a large group of trend following traders together in one portfolio might not be a wise move. Covel and Schwager also touch upon the presidential election and discuss why whoever is selected to be the next president might not make much of a difference in the markets. Special free DVD offer: www.trendfollowing.com/win.