Synopses & Reviews
For todays shell-shocked individual investors, financial expert Charles B. Carlson offers hands-on advice on how to survive — and thrive — in a wildly fluctuating market. The economic recession of the past year, followed by the tragedy of September 11, sent a ripple of panic through investors in 2001. The market shed trillions of dollars in wealth, and hundreds of thousands of individual investors suffered substantial financial losses. The volatility we experienced last year was more than a fluke, argues investment expert Charles B. Carlson. With the ongoing changes in the economy, including changes in corporate reporting laws, instant availability of financial information, and the ability to buy and sell stocks with the touch of a keystroke, volatility is here to stay.
But volatility isnt necessarily a bad thing. In fact, Carlson argues, if you know how to weather today stormy markets, investing in them can be very profitable.
In The Smart Investors Survival Guide, Carlson shows investors how to make volatility work to their advantage. First, he argues, it is critical that investors match their investment style — growth, value, buy and hold — to the kinds of stocks they pick. For long-term investors, Carlson recommends that a portion of their portfolio be invested in what he calls the calm eye of the storm, “easy hold” stocks that have consistent, steady growth, and very low volatility. Even in the terrible market downturn of 2000, when the Nasdaq lost 39 percent of its value and stocks like Lucent and Cisco saw their share price drop by 80 percent or more, a number of investment sectors actually gained in value. The Dow Jones index, minus its technology stocks, broke even. In other words, even in the worst markets, not every stock or sector goes down.
Through what he calls the nine essential laws of successful investing in a volatile market, Carlson reveals:
• How to diversify the portfolios across stock sectors and investment vehicles
• The critical importance of matching ones investment style — value, growth, buy and hold — to the kinds of stocks one invests in
• The importance of “easy hold” — no-brainer stocks — in a portfolio, stocks that will grow 10 to12 percent a year with minimal
volatility.
Written by one of the most trusted names in the financial community, The Smart Investors Survival Guide shows investors how to master todays turbulent markets, and profit from them.
From the Hardcover edition.
Synopsis
The volatile markets of the past year sent a ripple of panic through many an investor, and thousands of individuals suffered substantial financial losses. It was more than a fluke, argues investment expert Charles B. Carlson. With the ongoing changes in the economy, including more corporate layoffs, and the increasing availability of instant and open information, volatility is here to stay. "The Smart Investor's Survival Guide" provides the guidelines every investor needs in order to survive and make money in a permanently turbulent economy.
Carlson clearly defines volatility and shows how investors can make it work to their advantage once they understand why it occurs. In nine detailed, easy-to-understand rules for successful investing, he covers these essentials: How to measure volatility; how to invest "in the eye of the storm"; how to ride out turbulence through asset and time diversification; how to build a portfolio that reduces volatility; and how to buy "easy hold" -- no brainer -- stocks that will grow 10 to 12 percent a year.
To help readers get started with confidence, he recommends specific investments and portfolios, identifies the industry sectors that are likely to produce the best returns, and outlines proven strategies for preserving and building wealth even during periods of rapid price swings.
One of today's most respected investment experts, as well as a bestselling author, Carlson is a frequent guest on CNN, CNBC, NBC's "The Today Show, " and Business News Radio. "The Smart Investor's Survival Guide" brings his valuable insights and on-target advice to investors concerned about recent prophecies of doom, and shows them how to reap profits now and in the future.
About the Author
CHARLES B. CARLSON, C.F.A., is the author of the bestselling
Eight Steps to Seven Figures as well as
Buying Stocks Without a Broker and
No-Load Stocks. He is the publisher of the “DRIP Investor” and “No-Load Stock Insider” newsletters, which reach more than 300,000 subscribers. The CEO of Horizon Investment Services, he lives in Valparaiso, Indiana.
From the Hardcover edition.