20/20 Money: See the Markets Clearly and Invest Better Than the Pros

Notes

CHAPTER 1: INVESTING IS A SCIENCE

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CHAPTER 2: INVESTING IS A DISCIPLINE

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CHAPTER 3: HUMAN BEHAVIOR

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CHAPTER 4: SENTIMENT AND THE MEDIA

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CHAPTER 5: HOW STOCK MARKETS REALLY WORK

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CHAPTER 6: FORECASTING, PART 1 — THE PRINCIPLE OF PROBABILITY

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CHAPTER 7: FORECASTING, PART 2 — RECOGNIZING PATTERNS

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^[1] Daniel Kahneman, "Two Big Things Happening in Psychology Today," Edge Editions, no. 262 (October 2008).

^[2] Francis Bacon, Novum Organum (Open Court Publishing Company, 1994).

^[3] Ken Fisher, The Only Three Questions That Count (Hoboken: John Wiley & Sons, 2007), 16.

^[4] Charles S. Peirce, The Essential Peirce: Selected Philosophical Writings 1893–1913 (Indiana University Press, 1998), CP 5.9.

^[5] George Lakoff and Rafael Nunez, Where Mathematics Comes From: How the Embodied Mind Brings Mathematics Into Being (Basic Books, 2001), XI.

^[6] According to Standard & Poor's Indices versus Active Funds Scorecard (SPVIA). The SPIVA Scorecard shows that for the five-year period through June 30, 2008, the S & P 500 outperformed 68.6 percent of actively managed large-cap funds, the S & P MidCap 400 outperformed 75.9 percent of actively managed mid-cap funds, and the S & P SmallCap 600 outperformed 77.8 percent of actively managed small-cap funds. Results were similar within the international arena. Among global equity funds, five-year results show the S & P Global 1200 outperforming 70.1 percent ...