Debunkery: Learn It, Do It, and Profit from It -- Seeing Through Wall Street's Money-Killing Myths
Do you own stocks?
If not, buy some and come back. Everyone should have some exposure to the stock market
I was recommended this book en passange while following a discussion on one of Norway's biggest stock investor forum, TekInvestor. The forum has a lot of dedicated investors following technology, biotechnology and also fintech (blockchain).
One of the younger forum member has an ongoing active thread about how the stock markets will fall into the abyss because of high government debt and that the baby boomers are soon to retire. He is pretty well articulated and well read, and is pretty good at arguing for his gloom and doom scenario (Bunk 31 Baby Boomers Retire, World Ends, Etc). He also bought a lot of options pretty cheap before the current market correction. An older forum member argues that huge markets corrections/ crashes are inevitable, but in the long run stock have outperformed all other asset classes (except cryptos perhaps). He also recommended reading this book. His stance aligns with mine: Capitalism is its own beast.
The book goes through some common bunks. I do not think personally I have fallen for many of them (perhaps Bunk 7 Trust Your Gut), but it was fruitful to see them through the mind of an investor legend, such as Ken Fisher.
As an anarcho-capitalist, I see no reason to have a central authority (government) and some of the bunks that get debunked are how investors think the government is important for the stock market. It also indirectly discredit Keynsian policies.
Bunk 33 Pray for Budget Surpluses
Bunk 36 Stpcls Love Lower Taxes
Bunk 39 Consumers Are King
Bunk 41 My Political Party Is Best for Stocks (KF call them poli-ticks)
There are more bunks on this topic, but I leave them open for future readers.
I am not sure if I agree with his debunkery of Bunk 43 (Foreign Stocks Just Feel SO... Foreign) or 44 (Who Needs Foreign).
Following the stock market is complicated enough in your own country, and even in a smaller country, Norway, you have trading opportunities in most sectors. Many foreign stocks can be cheap on paper, but the values are never realized because of more paternalistic modes of doing business (money goes to the familiy through salaries, options etc.).
To think you have an edge investing in foreign stocks is naive and can be costly. I can give many examples, but I think I leave it here.
The book is not a masterpiece or intend to be, but is a recommended read for all that are currently investing in the stock market.
Thank you for your time and attention. Steem on!