Reading Minds and Markets
Minimizing Risk and Maximizing Returns in a Volatile Global Marketplace
Vice President, Publisher: Tim Moore
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© 2009 by Pearson Education, Inc.
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First Printing June 2009
ISBN-10: 0-13-235497-7
ISBN-13: 978-0-13-235497-4
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Contents
Chapter 1 The Year of Investing Dangerously
Chapter 2 The World of Global Macro
Chapter 3 Exploit Your Edge; Eliminate Your Weakness I—Beating the Street
Chapter 4 Exploit Your Edge; Eliminate Your Weakness II—Battling Yourself
Chapter 6 The Five Factors: Putting Data to Work
Chapter 7 The First Factor: Momentum—Befriending the Trend
Chapter 8 The Second Factor: The Economy—Headwind or Tailwind for Stocks?
Chapter 9 The Third Factor: Liquidity—Follow the Money
Chapter 10 The Fourth Factor: Psychology—Greed Versus Fear
Chapter 11 The Fifth Factor: Fundamentals and Valuation
Chapter 12 Putting It Together
Acknowledgments
I would like to acknowledge the great effort and inspiration offered by my colleagues at Harris Private Bank, including Terry Jenkins, Graham Parsons, Brent Schutte, Jeffery Weniger, Jose Santillan, and Maria Garcia; the professionals at Ned Davis Research and Bloomberg; and my clients and professional associates who make this business a stimulating and rewarding experience.
—Jack Ablin
I owe a debt of gratitude to Jack Ablin for entrusting me with this project and for his patience as I worked to translate his ideas into prose—I hope the result does justice to his methodology. Thanks also to Jim Boyd at FT Press for his patience with the sometimes arduous process. Friends and family helped keep me sane; thanks in particular to Elizabeth Wine and Glenn Becker.
—Suzanne McGee
About the Authors
Jack Ablin is an Executive Vice President and Chief Investment Officer for Harris Private Bank in Chicago. With more than 25 years of experience in the investment business, Mr. Ablin was a mortgage-backed securities trader, a fund manager as well as a Director of Investments. He served in the Finance Department in the School of Management at Boston University and was the President of the Boston Security Analysts Society. Jack makes his home in Chicago with his wife, LeeAnn, and daughters, Elise and Emily.
Suzanne McGee has spent more than two decades writing about business and finance, including 13 years at the Wall Street Journal in Toronto, New York, and London. She is currently a contributing editor at Barron’s and a regular contributor to Institutional Investor. Her work has appeared in the Financial Times, INC, Art + Auction, and the New York Post. She is a recipient of both a Gerald Loeb Award and SABEW’s Best in Business Award. Suzanne lives in Brooklyn, where she is now at work on a book about Wall Street.