The Seven Rules of Wall Street: Crash-Tested Investment Strategies That Beat the Market

The Seven Rules of Wall Street: Crash-Tested Investment Strategies That Beat the Market

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by Sam Stovall
     
 

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“Sell in May, and then go away.”

It's an old saying, but this Wall Street adage is as relevant today as when it was first uttered. It worked once again during the market decline that began in 2008. In The Seven Rules of Wall Street, Sam Stovall, master investment strategist and expert on stock market history, presents seven familiar

Overview

“Sell in May, and then go away.”

It's an old saying, but this Wall Street adage is as relevant today as when it was first uttered. It worked once again during the market decline that began in 2008. In The Seven Rules of Wall Street, Sam Stovall, master investment strategist and expert on stock market history, presents seven familiar sayings that not only convey enduring truths but also serve as superb investment strategies.

In this engaging guide, Stovall subjects his chosen sayings to the facts of history and to his own personal experience. When it comes to building a portfolio, for instance, should you “let your winners ride, but cut your losers short”? Absolutely. “On average,” Stovall writes, “the 'winners' beat the market by a near two-to-one margin. The winners also beat the losers most years: seven out of every 10 years.”

Other Wall Street one-liners that emerge as timeless truisms include:

  • As goes January, so goes the year
  • Don't get mad--get even
  • Don't fight the Fed
  • There's always a bull market someplace

To support his conclusions, Stovall complements his sharp insight with the results of detailed back-testing, as well as tables and charts drawing on decades of stock market data.

A fun and lively read, The Seven Rules of Wall Street provides an abundance of wisdom in remarkably few words--proving that investing books can be as entertaining as they are educating.

Product Details

ISBN-13:
9780071615174
Publisher:
McGraw-Hill Professional Publishing
Publication date:
01/28/2009
Pages:
192
Sales rank:
381,752
Product dimensions:
5.50(w) x 7.50(h) x 1.00(d)

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Meet the Author

Sam Stovall, chief investment strategist at Standard & Poor's Equity Research, serves as chairman as the S&P Investment Policy Committee, where he focuses on market history and valuations. He is the author of The Standard & Poor's Guide to Sector Investing and “Stovall's Sector Watch,” a column featured on www.spoutlook.com.

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The Seven Rules of Wall Street: Crash-Tested Investment Strategies That Beat the Market 4 out of 5 based on 0 ratings. 6 reviews.
Anonymous More than 1 year ago
This book is one of the most well written on the topic of stocks that I have ever read (of 30+books so far). Every paragraph is informative with no filler at all. The explanations are very clear and easy to understand. The author explains four easy strategies to beat the S&P500 index. This book was a real eye-opener for me. How is it then, that so many Mutual Funds can't beat the market even before subtracting their exorbitant expenses? Are there really that many 'professional money managers' that are that poor at investing? Apparently so. This book shows - with some pretty convincing statistical evidence - that it is not that difficult to beat the market by more than 30%, seven years out of ten. Many professional money managers under perform the market by those same stats. I've been doing some research on these strategies and I notice that some of the DWA (Dorsey Wright ... index strategy) ETFs use the same strategies described in this book, so you don't have to do it yourself: you can just buy the ETF and the fees are about 0.65%. I advice you to check into it. This book will help you to understand the strategies used by the DWA ETFs. In my opinion, this book is a good buy. Very informative. B. Crawford, calgary
Anonymous More than 1 year ago
The material is relatively basic but can give a person a framework for starting a stock portfolio. The e-book has some deficiencies with displaying the tables. Most are chopped off when they should be displayed as landscape.
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Anonymous More than 1 year ago
A time tested methodology anyone with discipline can use.