Demystifying Market Mysteries

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Market Myths
By Ashok Jainani
MacMillan Publishers
Review by Anupama Mishra

One line “Relics of the past are destined for demise” summarises the entire book Market Myths. With support from hard, irrefutable data, the author attempts to demonstrate the dynamic and complex nature of markets and goes on to demystify, one by one, many of the known money making maxims. The book shatters some of the currently known popular fads about investing in the stock market.

In order to achieve financial freed, the author urges investors to learn to take and manage risk. “Making money is not a sin, but there is no legal get-rich-quick scheme which is both certain and infallible.”

Ashok Jainani superbly blends concepts of behavioural psychology, philosophy and history with stock market analysis, and juxtaposed with tonnes of data and articulated very well the unbiased analysis to prove that markets are non-liner and dynamic due to changing dimensions of the global financial system, the level of information flow both across time and market settings.

Throughout the book, the author uses nicely articulated one-liners to provide one-minute wisdom that makes it easy for readers to remember the key lessons. “If you aim to fly with eagles, it‘s no use learning to swim with the ducks” or “history moves on, historians remain a history”, “history is not destiny” are some of the one-liners to explain that history does not repeat in stock markets. Many a times, the author comes lightly on forecasters as he writes “To err is human, to repeat is market gurus.” Analysts, brokers and advisors find it easy to build models using mathematics and sell to ordinary investors, already a bewildered lot given their repeated tormenting experiences in the markets. But data reveal that the evidence in real life situations is contrary and treacherous.

Most of the illustrations are taken from Indian and American markets, but the concepts are explained in such a manner that readers anywhere in the world would be able to comprehend and relate with the situation in their own countries. The author rewrites the rules and redraws the lines governing investment in the stock market.

Ashok Jainani boldly says that nature`s cycles and universe` destiny ensure each great record is broken by the subsequent athlete, each baloney is punished one day and succeeded by a greater one that may come to be known as the most intelligent idea of the time or the other way round. The book which may go on to become a classic guide for stock market aspirants is a must read for investors, stockbrokers, advisors, academicians, theoreticians and self styled market prophets.

The book has received impressive previews by eminent persons in diverse fields such as Deepak Parekh, HDFC chairman, Mahesh Jethmalani, noted criminal lawyer, Prof Kanu H Doshi, Welingkar Institute of Management dean (finance), Dr Sanjay Sehgal, Delhi University Head of Finance, noted publisher Ashok Advani of Business India and well known corporate trainer Anil Lamba.

The book brings out empirical evidence suggesting that most financial markets are chaotic systems. Yet many traders as well as institutions have been trying to find an order in illusion to win on the Greed Street. The book proves that there is none in the markets and cautions the investors from getting swayed by these market methods peddled by influential talking heads on television. Market Myths is a valuable guide for investors who would be well advised to read this book to save themselves from market misfortunes.

The book brings out empirical evidence suggesting that most financial markets are chaotic systems. Yet many traders as well as institutions have been trying to find an order in illusion to win on the Greed Street. The book proves that there is none in the markets and cautions the investors from getting swayed by these market methods peddled by influential talking heads on television. Market Myths is a valuable guide for investors who would be well advised to read this book to save themselves from market misfortunes.

The book brings out empirical evidence suggesting that most financial markets are chaotic systems. Yet many traders as well as institutions have been trying to find an order in illusion to win on.

About the author: IE&M Team

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