Debunkery: Learn It, Do It, and Profit From It—Seeing Through Wall Street's Money-Killing Myths

NOTES

Introduction: Debunkery Made Easy

1 As of 06/30/2010.

Bunk 1: Bonds Are Safer Than Stocks

1 Thomson Reuters, MSCI World Index total return with net dividends.

2 Global Financial Data, Inc.

3 See note 1.

Bunk 2: Well-Rested Investors Are Better Investors

1 Global Financial Data, Inc., USA 10-Year Government Bond Total Return Index from 12/31/2008 to 12/31/2009.

Bunk 5: You Should Expect Average Returns

1 Global Financial Data, Inc., S&P 500 total return from 12/31/25 to 12/31/09.

Bunk 6: “Capital Preservation and Growth” Is Possible!

1 Global Financial Data, Inc., S&P 500 total return from 12/31/1925 to 12/31/2009.

Bunk 7: Trust Your Gut

1 Daniel Kahneman and Amos Tversky, “Prospect Theory: An Analysis of Decision Under Risk.” Econometrica, Volume 47, Number 2 (March 1979). pp. 263-291.

2 Thomson Reuters, MSCI World Index, price level return.

3 Ibid.

4 Thomson Reuters, MSCI World Index total return with net dividends; Global Financial Data, Inc., S&P 500 total return.

5 Source: MSCI. The MSCI information may only be used for your use, may not be reproduced or redisseminated in any form, and may not be used to create any financial instruments or products or any indices. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing, or creating any MSCI information (collectively, the “MSCI ...