Book description
What can moonshine, mountain climbers, power plants, salmon, football players, and well-known celebrities teach you about investing? More than you ever imagined!
Through entertaining, easy-to-understand anecdotes, analogies, and examples, Canto reveals why the most successful investment strategies reflect a balance of active and passive approaches. You’ll learn how to “read” economic cycles, identifying the specific asset classes most likely to outperform in tomorrow’s business environment.
Construct and optimize your winning investment plan, step-by-step, from start to finish!
MAKE HAY WHILE THE SUN SHINES
The case for predicting, forecasting, and timing
PASSIVE INVESTING? ACTIVE INVESTING? NO. BOTH.
Why you need to take both sides in the never-ending debate
ELASTICITY: CATCH IT IF YOU CAN
Putting industry behavior to work for you
CALIFORNIA, FRANCE, AND THE “LOCATION EFFECT”
Investing internationally in the age of globalization
TURN “SMOKE” INTO “SIGNALS”
Making the most of publicly available price data
YOUR PORTFOLIO VS. THE GOVERNMENT
Anticipating and responding to regulations and taxation
TILT TOWARD SUCCESS, ONE STEP AT A TIME
Build your benchmark portfolio, then optimize it for changing environments
Victor Canto reveals exactly how the economy affects markets and how to “read” business cycles so you can profit from every shift in the business cycle. Among the topics covered: investing internationally in the age of globalization; transforming price data into usable market “signals”; anticipating the impact of regulations and taxation; and more. From start to finish, Canto’s focus is practical, and his focus is simple: outstanding investment results.
Table of contents
- Copyright
- Financial Times Press
- Acknowledgments
- About the Author
- Foreword
- Preface
- Introduction
-
1. The Buy-and-Hold Connection: Investing Fundamentals, Courtesy of the American Homeowner The American Dream—or Reality?
- The American Dream: As Real as Ever
- The Motivating Force of a Demand-Led Expansion
- Buy and Hold, but for How Long?
- Transaction Costs (Greatly) Influence Holding Periods
- Riding Out the Dips: A California Story
- The Returns: Capital Gains
- The Returns: Imputed Income
- Calculating Your Total Return
- Onward and Upward to the Stock Market
- Endnotes
- 2. Leaping the Transaction-Cost Hurdle: Sometimes It’s Easy, Other Times It’s Not
- 3. Dressing Appropriately for the Stock Market: The Potential Payoffs of a Switching Strategy
-
4. Catch Elasticity If You Can: An Introduction to Industry Behavior
- Shock Terminology: Beta and Elasticity
- The Friendlier Skies of Industry Profitability
- The Pitfalls of a Beta-Reliant Strategy
- The Promise of Beta Plus Elasticity
- Fine-Tuning Your Stock Market Indicator Lights
- Rethinking Industries That Suddenly Go Elastic
- Catching Elasticity: Rules of Engagement
- An Outperforming Strategy
- Endnotes
- 5. Putting High-Beta to Work: Industry-Based Portfolio Strategies
- 6. California Is a Country: An Introduction to the Location Effect
- 7. ...And France Is a State: How to Invest Internationally in the Age of Globalization
- 8. Pipelines to Our Investment Returns: How We Get What We Want, in the Amount We Want, and When We Want It
- 9. Who Are You? Investor Profiles and the Case for Asset Allocation
- 10. Your Benchmark Portfolio...and Beyond
-
11. Turning Smoke into Signals: How to Make the Most Out of Price Data
- Follow That Apple: Demand Shift
- Follow That Apple: Supply Shift
- Same Smoke, Different Signal
- The Press and Prices: Approach with Caution
- Shock Study: The Twenty-First-Century Bears
- Is Pricing Power All-Powerful?
- Prosperity Measures and Price Movements
- Price-Smoke Detectors
- A Word on Windows of Opportunity
- Endnotes
- 12. Making Hay While the Sun Shines: The Case for Predicting, Forecasting, and Timing
- 13. The Fight Is On: How to Invest Properly Relative to Regulations, Inflation, and Taxation
- 14. Ending the Never-Ending Debate: Active vs. Passive Investing and Why You Can Take Both Sides
- 15. A Rational Walk Down Wall Street: Darting Between Passive and Active When the Odds Are in Your Favor
- 16. Alpha Bets: The Case for Hedge Funds and a Greek Letter You’ll Want in Your Portfolio
-
17. Tilting Toward Success: A Step-by-Step Guide to Above-Average Asset Allocation
- The Above-Average Regimen
- Framework Fundamentals: Supply and Demand
- Framework Fundamentals: Elasticity
- Looking Backward to Invest Forward
- The Global Allocation Revisited
- From Passive to Intermediate to Active
- A Cocktail Construction
- Icing Your Glass: The Stock/Bond Split
- A Jigger of This: The Location Choice
- A Jigger of That: The Size and Style Choices
- Shaken or Stirred: The Active/Passive Switch
- Alpha Chasers
- Cocktail-Economics Hours
- Endnotes
Product information
- Title: Cocktail Economics: Discovering Investment Truths from Everyday Conversations
- Author(s):
- Release date: May 2007
- Publisher(s): Pearson
- ISBN: 9780132432733
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