Addy, Chris, 172
Administrative matters, 184
Advisor, hiring an investment, 153-184
Amateur investor, 139, 142-143
American Century, the, 211
Anchoring, 162
Arnott, Rob, 123
Background check, 172
Back-testing, 203
Bear market, 9, 38, 54, 81, 90, 104, 125
Behavior, 160
Behavior, fund performance vs. investment, 119-121
Bent, Bruce, 63
Beta, 88-80
Bias, investment industry, 90
Bogle, John, 188
Bonds, 7, 10, 14, 24, 38-39, 44, 49-75, 91, 92, 109, 115, 120, 146, 155, 156, 161, 176, 185, 186, 187, 188, 189-190, 191, 195, 197, 198, 205-210, 214
Boyle, John, 17
Bradford, Jimmy, 66-67, 120, 165-166
Brain damage, investment returns and, 116
“Broker Check,” 167v
Brown, Henry, 63
Buckner, Gail, 91
Buffett, Warren, 9, 16, 39-40, 66, 104, 116-117, 126, 160
Burnside, Daniel J., 204
Business Brilliant, 166
Business, risk and, 35
BusinessWeek, 125
Buy and hold, 103-104, 113, 135
Buying back, 102
Callan Associates, Inc., 196
Capital Cost Premium, 73
Castle Hall Alternatives, 172
Certificates of deposit (CDs), 30, 49, 50, 51, 62, 64, 65-66, 99, 205, 213
CFA exam, 68
Combs, Todd, 40
Commissions, fees vs., 113-114
Commodities, 10, 140, 147, 161, 189-190, 191, 195, 197, 198, 200, 202, 210
Common Behavioural Biases, 161-162
Composition of returns, 95-97
Conative-cognitive divide, 117
Condition, risk as a, 30
Consistency, 96
Consumerism, 105-108
Contrarian investor, 139, 143-144
Control, diversification and, 194
Crestmont Research, 129
Cuban, Mark, 186
Davis, Shelby, 9
Dimensional Fund Advisors, 185
Disposition effect, 161
Diversification, 7, 10, 63,65, 82, 87, 99, 104, 114, 130, 161, 185-216
Doochin, Ben, 79-80
Dow 30,000 by 2008!, 122
Dow 36,000, 122
Dow 40,000, 122
Dow Jones Industrial Average (DJIA), 16-17, 41, 55, 56, 100, 101, 121, 123, 125, 127-128, 129, 157, 188
Dreamer investor, 139, 140142
Due diligence, 172-173
Dun & Bradstreet, 195
Easterling, Ed, 129
Economy, growing, 70
Emotion, 135
Emotion, investing and, 116
Enron, 194-195
Equity risk premium, 67-68
Estrada, Javier, 101
Evans, Harold, 211
Expectations, 145
Expected return formula, 146
Falkenstein, Eric, 92
Familiarity bias, 161
Feat index, 93
Fees, commissions vs., 113-114
Ferry, John, 116-117
Fidelity Magellan, 100
Fiduciary, suitability vs., 113-115
Finance, speculative, 71
Financial forecasting, 128
Financial instability hypothesis, 71
Financial literacy, 83
Financial Research Corp., 99
Financial wealth, negative, 13
Financial writers, 18
Finke, Michael S., 83
Fisher, Ken, 125
Forecasting, financial, 128
Frank Russell Company, 131
Frank, Barney, 212
Franklin Templeton
Investments, 91
Fund performance, investment behavior vs., 119-121
Getty, John Paul, 17
Gibson Paradox, 75
Gibson, Alfred Herbert, 75
Gladwell, Malcolm, 35-36
Goals, investment, 24
Goldsmith, Marshall, 160
Graham, Benjamin, 104
Grantham, Mayo, Van Otterloo & Co., 72
Great Recession, 69
Happiness, 217-219
Hiring an investment advisor, 153-184
Hussman, Josh, 125
Huston, Sandra J., 83
Increasing returns, 79-117
Industrial and Power Securities Company, 187-188
Inflation, 14, 50, 54, 57-60, 90, 115, 120, 161, 190, 210
ING Group, 200
Inker, Ben, 72
Inquiry Into the Nature and Causes of the Wealth of States, An, 10
Investing, the math of, 83
Investment advisor, hiring an, 153-184
Investment behavior, fund performance vs., 119-121
Investment Company Act of 1940, 39
Investment Company Institute, 63, 178
Investment goals, 24
Investment industry bias, 90
Investment programs, 107, 160, 165
Investment return, 24026
Investors, types of, 138-144
IQ, 116-117
Ireland, Gregg, 128
Israelsen, Craig, 99, 192, 200, 201, 206, 218
J.C. Bradford & Co., 66
Jaffe, Chuck, 103
Japan, 24, 130, 194-195, 210-211
Jones, Paul Tudor, 140
Kessler, Andy, 100
Keynes, John Maynard, 75
Kirby, Robert, 209
Krosby, Quincy, 196
Laffer Curve, the, 10
Laffer, Arthur B., 11
Laise, Eleanor, 200
Lehman Brothers, 63
Liquidity, 71
Logic, 23
Losses, reducing, 79-117
Luo, Frank, 134
Lynch, Peter, 17, 100, 126-127
Madoff, Bernie, 171, 172, 194-195
Major Market Index, 157-158
Malkiel, Burton, 209
Market Volatility Index (VIX), 93-95
Martin, David L., 204
Math of investing, 83
McMenamin, Stephen, 172
Meyer, Fritz, 130
Minsky, Hyman P., 71
Model, original diversification, 186-189
Money market funds, 62-65
Money, the future of, 211-214
Morningstar, Inc., 40, 44, 112, 120, 131, 133, 137, 162, 194
Murray, Nick, 186
Mutual fund advertising, 90
Mutual fund prospectuses, 38-39
Mutual funds, 203-204
Nees, Bernie, 127
Negative financial wealth, 13
Nelson, Willie, 196
Newcomer, Mabel, 119
No-load funds, 18, 107, 110-113, 116, 166, 178
Obama, Barack, 213
Oil, 100
Original diversification model, 186-189
Parker, Jonathan A., 68
Past performance, 119, 137, 161, 179, 199, 210, 215
Periodic table of investments, 196-197
Phillips, Don, 120
Ponzi units, 71
Portfolio management, 184
Portnoy, Brian, 143
Predicting the stock market, 119-149
Probability, 65
Professional development, 184
Programs, investment, 107, 160, 165
Prospecting, selling and, 184
Prudential Annuities, 196
Quantitative economics, 75
Rawson, Michael, 137
Reagan, Ronald, 212-213
Real estate, 190
Real return, 58
Reducing losses, 79-117
Regret, 161
Relationship management, 184
Representativeness, 161
Reserve Fund, 63
Retail investors, 179
Retirement, 13
Return range, 44
Return, real, 58
Returns, composition of, 95-97
Returns, increasing, 79-117
Risk tolerance, 29, 114, 122, 137, 158, 174, 203
Risk, 7, 9, 15-19, 23-47, 49-75, 147-148
Risk, diversification and, 191-194
Risk, investment industry’s perception of, 36-39
Risk-free rate of return, 67
S&P 500, 16, 53, 92, 93-95, 178, 188, 205
Sandler O’Neill, 204
Satisfaction ladder, 217
Schiff, Lewis, 166
Securities Industry and
Financial Markets Associaiton, 115
Self-attribution, 162
Selling, prospecting and, 184
7Twelve strategy, 201-202, 206, 208
Shive, Ralph, 40-41
Social Security, 14
Soe, Aye, 134
Speculative finance, 71
Speculator investor, 139, 140-141
Stevenson, Betsey, 217
Stock market, 9, 13, 14, 16-17, 29, 41, 49, 52, 55, 63, 66, 68, 69, 93-9, 98-99, 101, 104, 159, 170, 179, 210, 213-214, 215
Stock market, predicting the, 119-149
Stock owners, 65-67
Stocks, 7, 9, 10, 14, 24, 30-31, 32-33, 43-44, 49-75, 81, 88-89, 91, 92, 100, 101, 104, 108-109, 115, 120, 131, 134-135, 146, 158, 159, 161-162, 165, 176, 178, 185-186, 187-192, 195, 197, 198-200, 203-204, 205-206, 208, 209-210, 212, 214
Suitability, fiduciary vs., 113-115
Tax law, 170
Time, risk as a function of, 32-33
Tolerance, risk, 29, 114, 122, 137, 158, 174, 203
Trend chasing, 162
Truesdail, George, 102
Trump, Donald, 17
Turner, Ted, 35-36
Types of investors, 138-144
Utility stocks, 109
Wall Street Journal, 125-126
Wellington Fund, 187-188
Whaley, Robert E., 93
Wilson, Thomas, 200
Wittgenstein, Ludwig, 23
Woititz, Janet Geringer, 116
Wolfers, Justin, 217
Woltman, Richard P., 205
Worry, 161
Worth, 116
Wriston, Walter B., 16