Customer Reviews

Defying the Market: Profiting in the Turbulent Post-Technology Market Boom

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The Leebs' latest treatise presents a compelling argument that technology is starting to run into physical limitations, which will slow the pace of progress going forward.

Whether or not you believe the case the authors lay out, the implications are far reaching enough that they merit exploring the argument.

The most serious conclusion the book makes is that without technology leading the way to a more productive economy, the mandate for faster global growth will spiral into more inflation in the next millenium.

If the conclusions are correct, it will throw the growth-investing world on its head. But all is not lost. The Leebs' tome isn't merely academic; the authors go onto instruct the average investor on how he or she can capitalize on this dynamic secular shift.

Most important to the reader, the authors provide specific stock recommendations and model portfolios tailored to investors with varying amounts of investment funds. The result is a well-reasoned academic construct for investing in the 21st century superimposed on a functional investment book for even the novice investor.

I'm addicted to reading investment books, and I've bought and read hundreds. But I recently finished one that I think is truly special-Defying the Market by Stephen Leeb and Donna Leeb. Although I knew that Stephen Leeb is well-respected investment adviser and money manager, I was skeptical when I saw from the jacket copy that this book argues that technology is slowing down and bases its investment advice on that premise. But the book convinced me that there's a lot to what he says. This is an investment guide that contains no hype, just a lot of solid research and original analysis. As a bonus, it is so readable that even though initially I thought I might find the section on technology and science hard going. I zipped through it. The Leebs aren't trying to impress or fill up pages-they have a real message and it comes across clearly. In fact, this book is a book not just for investors but for everyone that is interested in making sense out of today's world.

I am somewhat ambivalent about this book. The authors say that there has been no major scientific or technological breakthrough in the last 20 or so years, and yet, fail to pinpoint the reason why technology as an investment sector has done so well in the last decade. To present my own opinion, I think it is because of the immense progress made in *applying* science and technology to real-world problems. I don't think the authors say this anywhere in their book. All they say is that scientific and technological innovation is slowing down. However, they make a good case as to why they think the sector will slow down even more in the coming years.

I am also in agreement with the authors' arguments that as far as investing is concerned, the kind of portfolio that will generate great returns in the next 15 years is going to be something that will look vastly different from the one that generated great returns in the last 15 years. Towards this end, the authors present various portfolios consisting of inflation hedges, deflation hedges, franchises and environmental plays. They also explain in great detail the reasons why an investor should diversify along those lines.

All in all, a very interesting book. I think it will serve as a handy reference for every serious investor during the coming decade or two.

According to Stephen and Donna Leeb, technological advances are slowing while global economies are pressured to maintain growth. These factors will combine to create an inflationary environment. Inflation will change investors' strategies. The authors suggest investing in oil stocks, small-cap companies, and a few select large-cap companies. They are intriguing contrarians. They assert that Internet companies are a poor investment, because they believe the Internet won't achieve its promised increase in productivity and efficiency. They warn that overpopulation will create environmental disasters, which investors should prepare for by how they invest. We at getAbstract recommend this thought-provoking advice to investors, though not as their sole source of guidance.

Many value investors would probably agree with and even love the book. I found it truly intriguing and well thought out, however, it will be hard on those in love with technology. I do not know whether the technological revolution will slow down in the next five years or whether its effects on economic growth will begin fading. And frankly, I think that no one has an answer to this question. It's true that the expansionary business cycle in the American economy has been far longer than anyone anticipated back in the early nineties and that we may have already seen the best of this expansion. It's hard to believe that technology can eliminate business cycles-it can smoothen and prolong an expansion, but sustaining it forever will be a problem. I am sure no one will argue that endless productivity gains are achievable and I agree with the author on many points, I just don't think that it's possible to call technology's top. Overall a very interesting book that could change your outlook on the stock market and economy.

This book has none of the typical drivel and conventional wisdom that pervade most investment books. Leeb's analysis of the critical and often overlooked relationship between the investment markets, technology and the economy are fascinating and convincing, and very likely will prove prescient as well. A must read for all long-term investors.

This book promises to be highly controversial. It took me totally by surprise in that it cogently presents a case for a dramatic slowdown in technology and the implications for stocks. I am not sure I agree with everything, but this is one of the most thought provoking books I have ever read. It will cause me to at least rethink my investments and maybe even lead me to change them.

The Leebs' book (as in S. Leeb's earlier work) states something that few would even consider, that the pace of technological progress is slowing markedly. He states in plain English what this means for the typical American investor. No longer can we rely on the pace of technological progress to drive the market to new highs, but rather we will need a new paradigm to look at the future. I recommend this book for anyone who invests and has a even passing interest in technology.

On the recommendation of a friend, I just finished reading a new book by Stephen and Donna Leeb, Defying The Market. This book is amazing - thought-provoking, original, strongly argued, and exceptionally readable. In relatively few pages it packs in an incredible amount of information about everything from computers to medical research to agricultural trends and somehow makes it all understrandable, interesting, and most important, instantly relevant to my investment needs. The authors' main point is that technological progress is slowing down, while strong worldwide economic growth has become a necessity. These trends - which they argue will lead to, among other things, rising inflation, will affect every kind of investment, and they tell you exactly which investments will benefit and which ones will suffer. The book is terrific! In fact, it is one of those rare books that, after you read it, you feel that you will look at the world differently from that point on. Whatever your feelings about technology, if you invest in the market at all, you should read this book!

I strongly recommend this book not just to investors, but to anyone who cares about where our faith in technology is taking us. Leeb makes a strong case not only that tech stocks will soon be unable to fuel continued gains for investors, but that high tech itself will fail to solve some of the planet's most pressing problems.

It may be impossible for dissenting voices to be heard above the media frenzy surrounding tech stocks, but Leeb offers plenty of evidence, some of it truly mindblowing, to support his arguments. He then posits a new paradigm and roadmap for successful investing that I found utterly convincing.

No summary can do justice to this courageous, thought-provoking and humane book. The reading list at the book's back is by itself worth the price.