Investing with the Trend provides an abundance of evidence for adapting a rules-based approach to investing by offering something most avoid, and that is to answer the “why” one would do it this way. It explains the need to try to participate in the good markets and avoid the bad markets, with cash being considered an asset class. The book is in three primary sections and tries to leave no stone unturned in offering almost 40 years of experience in the markets.
Key Features
- Part I – The focus is on much of the misinformation in modern finance, the inappropriate use of Gaussian statistics, the faulty assumptions with Modern Portfolio Theory, and a host of other examples. The author attempts to explain each and offer justification for his often strong opinions.
- Part II – After a lead chapter on the merits of technical analysis, the author offers detailed research into trend analysis, showing how to identify if a market is trending or not and how to measure it. Further research involves the concept of Drawdown, which the author adamantly states is a better measure of investor risk than the oft used and terribly wrong use of volatility as determined by standard deviation.
- Part III – This is where he puts it all together and shows the reader all of the steps and details on how to create a rules-based trend following investment strategy. A solid disciplined strategy consists of three parts, a measure of what the market is actually doing, a set of rules and guidelines to tell you how to invest based upon that measurement, and the discipline to follow the strategy.
Contents
- Chapter 1 Introduction
Part I: Market Fiction, Flaws, and Facts
- Chapter 2 Fictions Told to Investors
- Chapter 3 Flaws in Modern Financial Theory
- Chapter 4 Misuse of Statistics and Other Controversial Practices
- Chapter 5 The Illusion of Forecasting
- Chapter 6 The Enemy in the Mirror
- Chapter 7 Market Facts: Bull and Bear Markets
- Chapter 8 Market Facts: Valuations, Returns, and Distributions
Part II: Market Research
- Chapter 9 Why Technical Analysis?
- Chapter 10 Market Trend Analysis
- Chapter 11 Drawdown Analysis
Part III: Rules-Based Money Management
- Chapter 12 Popular Indicators and Their Uses
- Chapter 13 Measuring the Market
- Chapter 14 Security Ranking, Selection, Rules, and Guidelines
- Chapter 15 Putting It All Together: The “Dancing with the Trend” Model
- Chapter 16 Putting Trend-Following to Work
- Chapter 17 Conclusions
- Appendix A: Passive versus Active Management
- Appendix B: Trend Analysis Tables
- Appendix C: Market Breadth
- Appendix D: Recommended Reading
- Bibliography
- About the Online Resources
- Index
About the Authors
- Gregory L. Morris is Chairman of the Investment Committee for Stadion Money Management, LLC, which manages approximately $5.4 billion, and their Chief Technical Analyst. Prior to this role, Morris served as a trustee and advisor to the MurphyMorris ETF Fund and as treasurer and chief executive officer of MurphyMorris Money Management Co. and MurphyMorris.com. He has been a technical market analyst for over forty years, ranging from analysis software development and website analysis and education to money management. Morris is the author of two books, Candlestick Charting Explained and The Complete Guide to Market Breadth Indicators. He has appeared frequently on financial news shows, has lectured on technical analysis worldwide, and has been featured in major magazines. Morris was a U.S. Navy fighter pilot, is a graduate of the Navy Fighter Weapons "Top Gun" School, and holds a degree in aerospace engineering from the University of Texas.
Book Details
- Hardcover: 496 pages
- Publisher: Wiley; 1 edition (December 31, 2013)
- Language: English
- ISBN-10: 1118508378
- ISBN-13: 978-1118508374
- Product Dimensions: 10.1 x 6.9 x 1.7 inches
- List Price: $80.00