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Book Sale

Being the frugal person that I am, I’m always looking for ways to save money. I just happen to come across a few books selling at significant discounts for some unknown reason.

Any takers?

  

Actually, I’m just using this joke to make a point.

When the economy was flourishing and the stock market was climbing, investors’ logic became cloudy and thoughts become irrational. We tended to think “the sky’s the limit” and the good times will never end.

Well, that’s exactly what’s happening now, but in the opposite direction.

The economy is faltering and the stock market is tanking. Our logic is becoming cloudy and our thoughts irrational. We’re panicking and starting to think that our economy and whole financial system is on the verge of collapse. It seems as though there’s no end in sight.

These three books should help put things in better perspective.

Comments 1

  1. Mike wrote:

    Here’s a very enlightening article written by Jason Zweig, and published in The Wall Street Journal this morning.

    What History Tells Us About the Market

    According to an excerpt from that article:

    This collective stupor may very likely be the last stage before many investors finally let go — the phase of market psychology that veteran traders call “capitulation.” Stupor prevents rash action, keeping many long-term investors from bailing out near the bottom. When, however, it breaks and many investors finally do let go, the market will finally be ready to rise again. No one can spot capitulation before it sets in. But it may not be far off now. Investors who have, as [Ben] Graham put it, either the enterprise or the money to invest now, somewhere near the bottom, are likely to prevail over those who wait for the bottom and miss it.

    Posted 12 Oct 2008 at 9:28 am

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