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Divorcing the Dow: Using Revolutionary Market Indicators to Profit from the Stealth Boom Ahead
 
 
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Divorcing the Dow: Using Revolutionary Market Indicators to Profit from the Stealth Boom Ahead [Hardcover]

Jim Troup (Author), Sharon Michalsky (Author)
4.4 out of 5 stars  See all reviews (5 customer reviews)

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Book Description

January 31, 2003
An investment approach that unlocks the secret of market patterns
Based on over forty years of combined author experience as portfolio managers and financial advisors, Divorcing the Dow presents a timely framework for understanding and investing in market cycles. Authors Jim Troup and Sharon Michalsky believe that the Dow Jones Industrial Average is no longer a relevant indicator of market performance; in fact, they feel that watching the Dow may actually obscure indications that the financial markets are poised to experience a boom that dwarfs anything seen before. Based on in-depth research and field-tested in their own successful management of millions of dollars in personal and corporate assets, Divorcing the Dow introduces investors to a revolutionary paradigm for assessing the markets and making investment decisions. Troup and Michalsky's approach focuses on analyzing patterns of productivity as a way to anticipate market cycles and investment potential-and with this book they've outlined how investors can begin to recognize these patterns themselves. Divorcing the Dow provides investors with a new framework for thinking about financial markets and gives readers specific investment techniques to anticipate the market's direction and identify companies poised for sustained productivity and long-term growth.

Jim Troup (Sarasota, FL) is First Vice President, Financial Consultant, Portfolio Manager, and Corporate Client Group Director at Smith Barney. A twenty-four-year finance veteran, Troup has worked with leading investment firms including E.F. Hutton and Merrill Lynch, and lectures extensively on portfolio management and asset allocation.

SHARON MICHALSKY is First Vice President, Financial Consultant, Portfolio Manager, Corporate Client Group Director at Smith Barney, where she began her career nineteen years ago. She has attended The Wharton School and is the guest speaker at many professional forums where she lectures on investment methodology and portfolio management.


Editorial Reviews

From the Inside Flap

Three years into the 21st century, investing is still done the way it was a hundred years ago.

Like all things outdated, the fable that the Dow Jones Industrial Average is the center of the financial universe once served a purpose. Today its relevance is evaporating and its original purpose is a dim memory. Yet, fear of change has investors clinging so desperately to the past that they are getting rope burn.

Since the Dow was established over a century ago, a series of awakenings have rejuvenated productivity and introduced new business cultures. With each new business culture, a new investment culture has formed. Unfortunately, the powerful interests vested in the status quo tend to direct attention away from the opportunities the new investment culture offers. This restrictive view tells investors like yourself to be concerned about what the Dow did today and where it will be tomorrow, instead of focusing on what you must do to achieve financial success in the new investment culture. A myopic focus on the Dow also obscures the indicators suggesting that certain markets are heading toward the biggest boom in history.

Based on over forty years of combined author experience as portfolio managers and financial advisors, Divorcing the Dow begins by explaining why the Dow Jones Industrial Average is no longer a relevant barometer of the economic environment. To replace the Dow, authors Jim Troup and Sharon Michalsky present a timely and revolutionary framework for understanding and investing in market cycles. Their approach focuses on analyzing patterns of productivity as a way to anticipate market cycles. After seven years of mapping the investment genome, Troup and Michalsky discovered how a new investment cycle was triggered in 1998. They open the viewfinder on their research to show you the financial markets in their historic, cultural, and economic context, revealing the patterns that indicate the markets that are poised to experience a boom dwarfing anything seen before.

Troup and Michalsky provide investors with a new framework for thinking about financial markets and give specific investment techniques to anticipate the market’s direction and identify companies poised for sustained productivity and long-term growth. Based on in-depth research and field-tested in the authors’ own successful management of millions of dollars in personal and corporate assets, Divorcing the Dow introduces you to a revolutionary paradigm for predicting market patterns. Troup and Michalsky provide you with the state-of-the-art tools needed to make strategic and profitable investment decisions and get a jump-start on other investors who continue to use an investing system that clearly has run its course.

From the Back Cover

Praise for Divorcing The Dow

"Troup and Michalsky know how to see beyond the negativity and restore the reader’s confidence in the financial markets."
–Louis Navellier, CEO and President, Navellier and Associates, Inc.

"Divorcing the Dow digs deep into the changes behind the markets. This is a thought-provoking book in a critical economic era."
–Jack London, President and CEO, CACI International Inc.

"Divorcing the Dow clearly explains how to profit from the transformations of the market culture. It is a road map for success filled with terrific insights."
–Jim Madden, CEO, Exult

"Divorcing the Dow exposed me to a balanced fund of knowledge concerning the various markets and how they operate. I could hardly put it down!"
–G. Hunter Gibbons, Dickinson & Gibbons

"Readers of Divorcing the Dow will emerge with an understanding of the 21st century investment culture and a renewed enthusiasm for equities investments. It is insightful, thought-provoking, and refreshingly specific. Every investor and potential investor should read this book."
–Edward A. Labry III, President and CEO-Elect, Concord EFS, Inc.

"Divorcing the Dow presents provocative thoughts on the new business paradigm in our age of increasing technology, information, and speed."
–Jim Sinegal, President and CEO, Costco Wholesale Corp.


Product Details

  • Hardcover: 240 pages
  • Publisher: Wiley; 1 edition (January 31, 2003)
  • Language: English
  • ISBN-10: 0471268704
  • ISBN-13: 978-0471268703
  • Product Dimensions: 9.1 x 6.3 x 0.9 inches
  • Shipping Weight: 1.1 pounds (View shipping rates and policies)
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (5 customer reviews)
  • Amazon Best Sellers Rank: #3,800,921 in Books (See Top 100 in Books)

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5 of 6 people found the following review helpful
Format:Hardcover
While Divorcing the Dow highlights some tried and true criteria for selecting individual equity investments, e.g. to focus on leading companies that dominate vital growing sectors of the economy, it also falls prey to a "new logic" approach that can be very misleading, especially to beginning investors. Worse, the authors don't understand a fundamental rule of financial arithmetic. On page 162 they discuss a hypothetical investment manager that turns a portfolio worth $100,000 into $200,000 in one year, and then loses half that value the next, resulting in an end year value of $100,000. The authors suggest that the "average return" from this is 25% (the arithmetic mean of +100% and -50%). Clearly, if we began and ended with the same dollar value, the average annual return is 0%, which is the result calculated by the geometric mean, the correct method to use in computing growth rates. A 25% average annual return on $100,000 would result in a portfolio value after two years of $100,000 X (1.25^2) = $156,250. The authors and their editors should know better. In my opinion readers would be far better served by such classics as The Intelligent Investor by Benjamin Graham, A Random Walk Down Wall Street by Burton Malkiel, or Contrarian Investment Strategies, by David Dremen.
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3 of 4 people found the following review helpful
Format:Hardcover
After watching a goodly portion of my portfolio melt away over the past few years, I was not only sleepless with anxiety but also furious at my financial advisor and at the financial community and corporate America in general. When I found and read this remarkable book, "Divorcing the Dow," I understood WHY the majority of the so-called financial "experts" were and continue to be so completely off-base, living in and advising on outmoded investment vehicles, as their clients' hard-earniend dollars go swirling down the drain! I likewise saw clearly how to intelligently and safely invest my remaining discretionary funds for maximum results in terms of my future goals.

I cannot underestimate my sense of relief and also my gratitude for this lifechanging book. The authors have done a prodigious amount of research. More than that, their brilliant conclusions appear to be sound and right on target. This is a one-in-a million book that should be a must-read for anyone who wants to see their savings grow the most effective way possibie. It is also, to my mind, a must-read for every single individual in the financial community. To NOT read this book is to remain in the dark ages of investing, and to lose out on the opportunity to profit enormously from the new investment culture that is right in place sight but invisible to those stuck in the status quo. I read constantly, and I can tell you that this book is the absolute best of the bunch - the real thing.

This review is from my heart - I know how I have suffered, watching my money - including money I inherited from my parents -just evaporate. Read "Divrocing the Dow" more than once. Give it to everyone you know. I did. I have also sent a copy to my financial advisor...and if he doesn't "get it" I am picking up my portfolio and moving on.

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2 of 3 people found the following review helpful
Wow, what a book! April 10, 2003
Format:Hardcover|Amazon Verified Purchase
Finally a positive outlook.

The authors'extensive research and easy read format makes it hard to put down. Divorcing The Dow constitutes information from the past that can be used as a road map for future investing. The research alone is worth the price of the book.

Thank you for such a great book in these uncertain times.

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Inside This Book (learn more)
First Sentence:
At a New Year's Eve party in 1998, an attorney friend of ours asked if we would meet with a client of his who was on his way to Florida to spend the high social season. Read the first page
Key Phrases - Capitalized Phrases (CAPs): (learn more)
New York, United States, Dow Jones Industrial Average, Russell Russell, General Electric, Federal Reserve, Mid Cap, Manhattan Associates, Wall Street, Benjamin Graham, Department of Commerce, Costco Wholesale, Bureau of Census, George Soros, New Economic View of American History, World War, Oxford University Press, David Hackett Fischer, Monetary Trends, Sun Tzu, United Kingdom, Bill Gates, Harry Dent, Retrieved June, University of Phoenix
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Front Cover | Table of Contents | First Pages | Index | Back Cover | Surprise Me!
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