The Economist Guide to Investment Strategy (3rd Ed): How to Understand Markets, Risk, Rewards, and Behaviour (Economist Books)

Supported by numerous charts and detailed analysis, The Economist Guide to Investment Strategy outlines how to construct investment strategies appropriate for individual investors. It looks at the risks and opportunities of uncomplicated strategies and it comes with wealth-warnings for those who wish to explore more sophisticated and fashionable investment approaches. It emphasizes the importance of taking into account insights from behavioral analysis as well as the principles of traditional finance. It highlights how habitual patterns of decision-making can lead any of us into costly mistakes, and it stresses how markets are most dangerous when they appear to be most rewarding. The global financial crisis that erupted in 2008 exposed the flaws in many investment strategies. This book explores the controversies that surround the management of wealth, and provides guidance on how to construct investment strategies that are appropriate for each investor. With detailed analysis, supported by data and anecdotes, it is above all a practical guide. It shows how the insights of behavioral analysis are widely reflected in investor actions, while emphasizing the importance of basing investment strategy on the principles of traditional finance. And it takes into account new research into behavioral and traditional finance, which has created new understandings of what investors want to achieve, along with their customary mistakes. Additionally, this third fully updated and extensively revised edition includes a wide analysis of alternative investments such as art and wine. The global financial crisis that erupted in 2008 exposed the flaws in many investment strategies. This book explores the controversies that surround the management of wealth and provides guidance on how to construct investment strategies that are appropriate for each investor. With its detailed analysis, supported by data and anecdotes, it is above all a practical guide. It shows how the insights of behavioural analysis are widely reflected in investor behaviour, while emphasising the importance of basing investment strategy on the principles of traditional finance. And it takes into account new research into behavioural and traditional finance which has created new understandings of what investors want to achieve and explores investors' customary mistakes Now in its fourth edition, this classic guide to investment strategy has been revised to give up-to-date ideas on pensions, investments of passion and more. Peter Stanyer and Stephen Satchell's Guide to Investment Strategy looks at the risks and opportunities of uncomplicated strategies and comes with wealth warnings for those who wish to explore more sophisticated approaches. It explains the importance of insights from behavioral analysis, the principles of traditional finance, and highlights how habitual patterns of decision-making can lead any of us into costly mistakes. After all, markets are most dangerous when most rewarding. Setting the scene Understand your behaviour Market investment returns How should and how do investor strategies evolve? The time horizon and the shape of strategy: keep it simple Setting the scene Equities Credit Hedge funds Private equity: information-based investment returns Real estate Art and investments of passion.