By: Ron Insana
Coming off the tough lessons learned after the dot com debacle, most individual investors feel confident that they would never again be caught up in a bubble. Or could they? Is the real estate market truly the safe haven that it appears to be or could it possibly be the next bubble to burst? TrendWatching: Don’t Be Fooled by the Next Investment Fad, Mania, or Bubble is a fascinating guide into the intricacies of the behavior of the markets.
History shows that no matter how tempting the risks and how devastating the ultimate crash, there are smart money players who manage to enter and exit the markets with great skill and perfect timing.
With the current economic climate serving as a backdrop, Trend Watching transforms the insights gleaned from history into savvy guidelines for profiting from future bubbles thus providing a tremendous tool for any investor.
In Trend Watching, Insana writes, “Valuation parameters remain remarkably constant. Success metrics rarely change. Simple measures of revenue and profit still determine the market values. And new thinking often obscures the time-tested rules of supply and demand.” Through engrossing mini-histories of infamous bubbles from the railroad boom of the nineteenth century to the recent high-tech/Internet mania, this book establishes objective criteria for recognizing the emergence of a bubble, monitoring its inflation and anticipating its collapse.
Experienced trend-watchers always manage to protect their wealth by diversifying their portfolios and constantly watching out for signs of an impending bust, an approach often ignored by investors who have accumulated great sums of money during the inflation phase of an asset bubble.
Ron Insana is the co-anchor of CNBC’s signature evening business program, “Business Center.” Insana regularly appears on “The Today Show,” “NBC News with Tom Brokaw,” and “Imus in the Morning."
ISBN#: 0-06-008462-6, (HarperBusiness; November 1, 2002; $24.95)