Trendwatching: Don't Be Fooled by the Next Investment Fad, Mania, or Bubble

by Ron Insana

Book Overview

A study of the dynamics of stock market trends identifies its often costly cycles while explaining how to identify and profit from bubbles, discussing major market events through history and what can... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0060084626
• ISBN13: 9780060084622
• Release Date: November 2002
• Publisher: Harper Business
• Length: 272 Pages
• Weight: 1.20 lbs.
• Dimensions: 0.9" x 6.0" x 9.0"

Customer Reviews

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the book is repetitive, but that is Ron's point. Bubbles repeat themselves. And the book is easy to read. To bad the Ron Insana's show on CNBC during the height of the high tech bubble wasn't so insightful. And who was heckling "qualcom...qualcom...qualcom" in the back ground during a show then?? Or "we should of bought Qualcom at the beginning of the year and closed our doors". My point is Ron the author sure is smarter than Ron the CNBC anchorman. It was Abby Joseph Colen that called it a bubble on Wallstreet Week on March 10th, and not Ron Insana.

History repeats itself

Mr. Insana wrote this book to inform investors that history does repeat itself over and over again. He is specifically referring to "investment bubbles." He shows graphically and textually the similarities and causes of many of the great speculative bubbles throughout history. Some of them include: Mississippi, South Sea, real estate, Japan, NASDAQ, etc. Many "bubbles" are described. They are easy to understand although most don't go into a lot of detail. Mr. Insana quotes many other references to clarify the stages of investment manias. The book was easy to read and would recommend this book to someone who wants more clarity on investment bubbles and wants general overviews of famous investment crashes throughout history.

Watch out for the road signs - they won't steer you wrong

CNBC anchor Ron Insana's "Trendwatching," his third examination of the stock market after "The Message of the Markets" in 2001 and "Traders' Tales" in 1996, should have been entitled "How not to lose your bundle the next time around." His stated purpose is to save the individual investor from him/her self during the next investment bubble that's sure to come. And he delivers his message loud and clear, whether it will be heeded or not. Throughout this work, Insana strains to point out that although bubbles occur, you do not have to be a victim; that with the historical knowledge he presents, you can arm yourself to go forth and do battle with market forces to survive and prosper through the bubbles' wild rides.This book is a revealing trip down investment-history lane and should be placed beside every investor's phone or electronic communications device as a reminder not to get caught up in the emotional mania that might be brewing right around the corner. He begins by defining what a bubble is, and borrowing strongly from Charles Kindleberger's (who died recently) "Manias, Panics, and Crashes," Insana traces bubbles starting from our most recent stock market debacle all the way back to Holland's Tulip Craze in the early 1600s. He finds that they all follow the Kindleberger (and Hyman Minsky) script: an invention or discovery sets off "a new era," then easy profits (speculation) fueled by easy credit or monetary conditions lead to the eventual parabolic blow off. Revulsion and recrimination set in as prices plunge back to earth. The insiders will have made out like bandits but the little guys get left holding a worthless bag of stocks. Reforms are instituted to correct the excesses. Then the stage gets set for the next bubble which will be of a different variety but of the same nature as the one before.The writing is crisp and the language is lucid. It's as interesting as it is educational. Where I would have wanted more insight concerns Insana's statement, "Bubbles, while useful in the building of transformational industries, are destructive when it comes to the financial well-being of the individual investor." That sounds like he's a bubble buster. Yet, he frequently references high-tech venture capitalist Robert McNamee who contends that without bubbles nothing is ever accomplished. So which is it? Can progress really happen without these manias in which we literally throw money at the "new, new thing" of Michael Lewis fame? Thinking along the lines much like the ongoing debate about what part adversity plays in human accomplishment, Insana raises the question of whether we can build new infrastructure without hurting the losers who invariably get in too late and stay in too long? The question remains to be answered.Another inquiry comes to mind while rummaging through the canal building, railroad building, automobile making, radio broadcasting...and Internet bubbles of the past couple hundred years: What part does politics play in the care a

If You Own Stock, Read This Book

While millions of Americans might feelbewildered by the confusion aroundthe market and turned off by muchof the media hype surrounding themarket, this book and its author arethe antitode.Ron Insana comes from the first tierof financial journalists who taketheir work seriously and provideperspective and insight that areuseful to anyone navigating reallife investments with real lifeconsquences for their financialsecurity. Lou Dobbs of CNN, NeilCavuto of Fox and Lou Rukeyser ofCNBC join Insana in this smallhigh quality circle of first ratemarket commentators and thinkers.This is a book about perspective andhistory. It is the history of megatrend market forces such as theTulip Mania from centuries ago andthe Japanese crisis that continuestoday, that Insana discusses andexplains. And its this historythat Insana reminds us offers theperspective so often missing today,a world of market bubbles andcrashes and scandals and confusion.Yes, they went crazy buying andselling Tulips and real estate atdifferent times in disparate partsof the world, just as they (we)went crazy buying and selling techstocks during the Nasdaq craze.As Insana reminds us, the marketevents we go through in our lifetimes,the good and the bad and theemotional frenzies up and down,are not unique to us. These kindsof megafrenzies have happened beforeand there is much we can learn fromhistory, to avoid mistakes thatseem to be repeatedly made, and tounderstand opportunities that maynot seem apparent in the heat ofthe moment and the emotionalism ofthe crisis.If you're disgusted with the marketand vow never to invest again, readthis book. And if you get thatcrazy feeling that you just haveto buy some stock today, thisminute, right now, you should alsoread this book. Because in the end,as is often said and as Insanareminds us well, those who learnfrom history are less likely torepeat its mistakes, and morelikely to prosper. In the meantimeread these true tales of marketmanias, remember that anything toogood to be true usually isn't,remember that fear and panic arenot the best ways to build financialsecurity. As you plan your financialfutures this book is invaluable byentertaining us, and reminding usof the obvious, which we so oftenforget.