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A Decade of Delusions Frank K. Martin

A Decade of Delusions By Frank K. Martin

A Decade of Delusions by Frank K. Martin


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Summary

Speculative Contagion is an insider?s riveting real-time and real-money account of the inflating Bubble, accented with the genuine suspense to be found only in real-life drama. The epidemic of lunacy and market speculation gradually affected more and more feverish investors, all prone to be infected by the insidious absurdity of the times.

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A Decade of Delusions Summary

A Decade of Delusions: From Speculative Contagion to the Great Recession by Frank K. Martin

The proven strategies rational investors require for success in an irrational market When the dot-com and real estate bubbles of the 1990s and 2000s burst, few were spared the financial fallout. So, how did an investment advisory firm located in Elkhart, Indiana one of the cities hit hardest by the economic downturns not only survive, but also thrive during the highly contagious speculative pandemics. By remaining rational. In A Decade of Delusions: From Speculative Contagion to the Great Recession, Frank Martin founder of Elkhart, Indiana's Martin Capital Management offers a riveting and real-time insider's look at the two bubbles, and reflects on how investors can remain rational even when markets are anything but. * Outlines strategies the average investor can use to wade through the endless news, information, and investment advice that bombards them * Describes the epidemic of market speculation that gradually infects feverish investors * Details how investors can spare themselves the emotional devastation and accompanying paralysis resulting from shocking financial losses Investors are still reeling from the instability in the market. A Decade of Delusions: From Speculative Contagion to the Great Recession provides the information investors need to achieve safety, liquidity, and yield.

About Frank K. Martin

Frank K. Martin, CFA, founded Martin Capital Management in 1987 after twenty years of experience in municipal finance and, later, mergers and acquisitions. Martin's post-secondary degrees are from Northwestern University and Indiana University. He resides in northern Indiana with his wife, Marsha. He has three adult children. Additional biographical information can be found at www.mcmadvisors.com.

Table of Contents

Foreword xi Preface xvii Chapter 1 Lead Us Not into Temptation 1 May Reason Prevail 2 Patience and Persistence 6 The Dean of Wall Street Revisited 12 The Investor s Dilemma 19 It s a Numbers Game 20 The Supremacy of Earnings 22 Stealth Compensation 36 Conclusion 42 Chapter 2 Techno Babble, Techno Bubble 43 A Tale of Two Markets 45 Back to the Future? 53 Warren Buffett on the Stock Market 58 Is the Internet the Answer? 65 What s a Long-Term Investor to Do? 68 Investment Redefi ned 69 Chapter 3 Pop!! .com 75 Risk: No Longer an Afterthought 76 Investment Strategy: Is It Time for Technology? 83 Is There a Snowball Rolling Our Way, Gathering Mass and Speed? 87 The Art/Science of Managing Risk 88 Baby Boomers: Whither Goest Thou? 99 The Internet and IPO Frenzy 100 Fool s Gold 101 Goliaths Slain 102 Chapter 4 Swimming against the Current 113 Prelude to Our Investment Strategy 116 Interest Rates: It Had Better Be Uphill from Here 127 The Power of Popular Delusions 131 The Mind of Crowds 139 Investment Consultants: The Great Middleman Myth 142 Chapter 5 The Greenspan Put ... Again 145 Investment Strategy 146 The Reckoning 149 Sober in the Morning 151 Micro versus Macro 151 The Margin-of-Safety Paradox 153 Waiting Patiently for Those Hanging Curves 154 Chapter 6 Only Fools Rush In 159 The Rogues Gallery, 2003 Vintage 160 Making Progress in the Post-Bubble Environment 164 How Did We Get Here in the First Place? 171 The Apogee of the Mutual-Fund Boom 181 The Great Abdication of Fiduciary Responsibility: The Defined-Contribution Plan 188 Where the Buck Really Stops 192 Chapter 7 Expanding Concern: A Bigger Bubble? 197 Maybe the Markets Are Not Random? 200 A Short History of Financial Euphoria 218 Fully Deluded Earnings: Penance (?) in the Cuff-Links Cooler 222 Run for the Roses: Of Pawns, Guinea Pigs ... and Retail Investors 231 Swing, You Bum! 242 Marathon Endurance 247 Chapter 8 What History Teaches 253 Free Markets: Popular Delusions and the Madness of Crowds 254 Aspiring to Rationality by Overcoming Heuristic Biases 257 Today Is Not Tomorrow: Cycles and Differing Opportunity Sets 259 Inverting the Traditional High-Risk/High-Return Paradigm 260 The Inevitability of Regression to the Mean 261 There Are No Called Strikes in the Investment Ballgame 263 Focus on the Important 264 The Malevolent Mathematical Mystery of Modern Money Management (a.k.a. MPT) 264 The Absurdity of the Collective Wisdom of Individual Irrationality 265 Diversification and the Myth of Safety in Numbers 266 The New-Era Error 268 Chapter 9 Contagious Speculation 269 The Means to the End 271 The Perfect Storm? Viewing the Vista through the Lens of History 272 The Blossoming of the Financial Economy: The Cataclysm in the Creation of Credit 281 Bubbles Are Indigenous to the Financial Economy 299 If Housing Prices Roll Over 306 A Remarkable Story of Risk Management Run Amok 310 The Perfect Storm Redux 325 Capitalism: When Financial Overwhelms Commercial 329 Minsky: A Prequel? 332 The Evolving History of Economics and Finance: Reflections 334 Chapter 10 The Tipping Point 339 Excerpt from Quarterly Capital Markets Review, July 2007 341 Draft of Letter to MCM Clients, July 2007 342 Quarterly Capital Markets Review, October 2007: What s Up, Doc? 348 Cyclical or Secular? The Current Crisis in the Larger Context of Cause and Effect Connecting the Dots through Time 350 The Misalignment of Incentives and the Opaque World of High Finance 352 Edging toward the Precipice 360 The Simple Question Why? 362 An Early Epitaph for the First Decade of the New Millennium 363 Credit-Default Swap Alchemy: Transmuting Junk into Gold 371 Counterparty Risk 376 Chapter 11 The End or the Beginning? 381 Origins of a Crisis: Decoupling Risk and Return 384 The Question on Which the Future of Investment Hangs 388 The Stockdale Paradox: What Do Survivors Have in Common? 389 Know Thyself 390 Harsh Realities and the Snowball Effect 394 The Future of Risk Aversion 400 Price Is What You Pay, Value Is What You Get 404 The Lost Decade 407 The Most Powerful Force in the Universe 409 Value Investors: A Rare Breed 411 Risk Once Again a Four-Letter Word? 413 Analysis and Intuition: The Yin and Yang 416 Epilogue This Time Is Different 427 Those Who Don t Remember History ... 428 The Insidious Disappearance of Accountability 430 The Intersection of the Philosophical and the Pragmatic 432 Respect for Risk ... Just for a Fleeting Moment 433 Index 437

Additional information

CIN1118004566G
9781118004562
1118004566
A Decade of Delusions: From Speculative Contagion to the Great Recession by Frank K. Martin
Used - Good
Hardback
John Wiley & Sons Inc
2011-04-14
480
N/A
Book picture is for illustrative purposes only, actual binding, cover or edition may vary.
This is a used book - there is no escaping the fact it has been read by someone else and it will show signs of wear and previous use. Overall we expect it to be in good condition, but if you are not entirely satisfied please get in touch with us

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