Are we on the cusp of a major long-term bull market in stocks and shares? That?s the theory of author Eoin Treacy and his new book Crowd Money is the guide to which shares are likely to travel the furthest the longest.
Crowd Money is also much more than this: it represents an innovative new branch of technical analysis. Bringing the crowd theory and psychological insights of thinkers like Freud to the markets for the first time, it shows readers how to understand and anticipate price movements with greater reliability than ever before It?s a deeply fascinating, encouraging and meaty read.
The vast majority of behavioural finance is directed at the academic community who have no experience of the day-to-day cut and thrust of the markets and as a result is difficult to employ usefully. Many people have become disillusioned with technical analysis because they have relied on a succession of indicators rather than accepting what a simple analysis of the raw price history tells us.
Analysts David Fuller and Eoin Treacy count some of the world's largest sovereign wealth funds, pension funds, traders and investors as subscribers. Their approach to measuring the rhythm of the market has been the secret weapon of alpha generators for decades. Now for the first time a book is available that sets out the approach to market analysis they employ on a daily basis at FT-Money.com using macro, behavioural, fundamental and technical cues.
We can fall in love with our investments. No other emotion describes why it is so difficult to sell. After all, breaking up is hard to do. Greed and Fear are useful frames of reference for commentators but Love explains much more of what's going on, and for the first time you can find out exactly how it powers (or undermines) markets - and how to make money in response.
Above all, Fuller and Treacy's approach reveals something astonishing taking place in the markets right now. We are living in one of the most exciting periods of human history: a confluence of powerful themes is setting the stage for a major secular bull market in the decade 2015 to 2025. In the meantime, interest rates will need to normalise, which is likely to provide everyone with an unmissable buying opportunity. Crowd Money closes by revealing over 125 shares ideally placed to be the global bull market stars of tomorrow.
Following a series of crashes in the decade 2000?2010 investors have become disillusioned with a monochromatic way of looking at markets. A purely fundamental perspective has not insulated advocates from the underperformance of equities. A purely technical perspective can often result in an over-reliance on indicators which obscures the reality provided by the market. Therefore a holistic approach which offers a fresh perspective on these topics by incorporating crowd psychology and the influence of monetary policy has obvious merit.
If you have ever wondered how market interrelationships shape investment trends or how the psychology of the crowd changes perceptions of value, or have been disappointed by conventional market analysis, this book is for you.