Customer Reviews

The New Laws of the Stock Market Jungle: An Insider's Guide to Successful Investing in a Changing World

5 star:		(5)
4 star:		(1)
3 star:		(1)
2 star:		(3)
1 star:		(1)

 

 

I didn't warm to this book. The author seems to lament the 'good old days' when individuals were forced to relay their orders through brokers. This offered brokers a wonderful insight on the directions markets would take since they had first hand information about the next day's trading session, from the best and worst traders. A broker can make a lot of money with that.

Alas, these days are gone. People now use electrical order placement systems and brokers are just as clueless as the retail traders. Pity. Of course, few of us had this inside track and I'm not sure we need to lament its passing.

The musings described above make up the bulk of the book. Here is a summary of the changes. Each of these topics is given chapter long treatment.:

Intraday volatility:
New rule: Intraday share price volatility is on the rise.
Old rule: In the past, wide intraday share price swings were less common, and when they did occur they were often associated with unexpected geopolitical or economic developments.

Trading like commodities:
New rule: Stocks are increasingly being bought and sold like commodities.
Old rule: In the past, institutions generally bought and sold stocks based on traditional methods of investment analysis, often with a longer-term perspective in mind.

Approaches and attitudes:
New rule: Investing and reason frequently give way to speculation and emotion.
Old rule: In the past, institutional buying and selling was primarily driven by logic and measured analysis (although emotions have always influenced investor behavior).

Information and communications.
New rule: More information and faster communications often have unexpected consequences.
Old rule: In the past, information tended to circulate around the marketplace in a slower and more orderly fashion, and the telephone was the primary means of communication.

Derivatives:
New rule: Derivatives are exerting a growing influence on share prices.
Old rule: In the past, the action in the derivatives market was generally secondary to what took place in the underlying cash markets (except on certain occasions, such as Triple Witching Fridays).

Seasonality and cycles.
New rule: Many seasonal and cyclical patterns are becoming less predictable.
Old rule: In the past, many seasonal and cyclical patterns were less widely known and were not affected by today's rapidly changing market forces.

Form and fantasy.
New rule: Substance and reality increasingly give way to form and fantasy.
Old rule: In the past, data produced and distributed by companies, analysts, government agencies, and others was less subject to error, distortion, and manipulation.

Market Indicators:
New rule: Many traditional market indicators are becoming less reliable.
Old rule: In the past, many market indicators were less widely known and were not affected by today's rapidly changing market forces.

Global factors:
New rule: Global factors and foreign investors are exerting a growing influence on share prices.
Old rule: In the past, American investors and domestic concerns were much more relevant to the direction of U.S. share prices than overseas influences.

The book is also sprinkled with 'action plans'. Here are few:
"...when a stock abruptly breaks out of a clearly defined trading range on relatively heavy volume, creating visual "gaps" on a daily bar chart, this is often a sign that a dramatic change in the outlook has taken place."

"When volatility begins to intensify after share prices have fallen for an extended period of time, it often indicates that a downtrend is nearing an end, at least in the short run."

None of this interests me a great deal. Upon reflection, the title suggests a much better book, something along the lines of 'Post 2003 changes in securities trading rules, and how to use them for competitive advantage'. This book would investigate the surreal world of Sarbanes-Oxley, how securities are added/subtracted from the Russell 2000, etc.

I thought this book was very well written and extremely insightful. I have been working in the financial markets for nearly twenty years and agree with the book's premise that the rules of the road have drastically changed over this time period. Mr. Panzner does a very credible of job explaining what is different about current financial markets and why some of the old indicators and maxims are no longer useful. More importantly, he provides some very useful advice on how to increase the chances for long term success in an increasingly short-term oriented world.

I rated this book a 5 out of 5 and believe it to be a must read for anyone who serious about investing.

This book gives serious investors the sorts of gritty, first-hand insights we have been looking for (but can't seem to find in too many other places).

I am impressed with the way the author has taken a series of seemingly unrelated developments (e.g., falling commission costs, the growth of the Internet, electronic trading, the rise of hedge fund investing) and analyzed how they fit together in a broad sense, as well as the impact they are having on the day-to-day action.

Best of all, the author offers terrific advice throughout the book that clearly reflects the wisdom of someone who has learned (the hard way?) what it takes to make money in the stock market.

In my opinion, New Laws of the Stock Market Jungle is well worth the investment.

I really found that Mr. Panzner did a fantastic job researching and writing this book. Not only did he touch upon some of the larger evolutions currently taken place (ie. increasingly global market place), but he also shed light on some of the gray areas such as volatility and emotion. Furthermore, as one who loves the English language, I appreciated his flowery and sometimes wordy style of writing. It is very different from the concise 'business writing style' I see day in and day out.

Investment pro Michael J. Panzner offers an insider's guide to Wall Street that will appeal to investors on several levels. He starts with easy-to-comprehend definitions of stock market terms such as "short-selling" and "equity-derivative products," and advances to more sophisticated concepts. With his down-to-earth approach, he demystifies the jargon, hype and superfluous data. What's more, he provides an excellent account of the historical factors and recent innovations that have altered global finance. His "10 laws of the new investment universe" are useful and comprehensive. Unfortunately, Panzner tends to glorify the past, glossing over well-documented foibles to focus on modern sins. Still, he provides a frank and insightful view of Wall Street's seductive lure. We recommend this book to investors who want to understand today's market.

I enjoyed this book and got a lot out of it. The author's insights on how short-selling and derivatives affect stock prices were particularly interesting, as was the chapter on global influences.

It seems like those who gave negative reviews either didn't read it or were trying to prove something.

The most appealing aspect of this book is the thesis itself -- the investment world is changing. This is the first book I've read that effectively addresses many of the cause-and-effect relationships taken place in today's stock global market. I thoroughly enjoyed the derivatives, trading like commodities and the global factors chapters.

Overall, I found this book to be a very good read.

I bought "Stock Market Jungle" after reading some of the favorable reviews. The book is helpful for those who need an introduction to changes in the industry. This book does not shed any new light on current issues facing the industry. One has to question the credibilitly of any market professional that tells you that this book is excellent or insightful; either they are being deceitful (not to surprising when you consider the source!!!) or they shouldn't be in the financial industry because they obviously haven't been paying attention. I suppose the glowing reviews were more disappointing to me than the book.

My reason for purchasing this book was because a number of experienced and well-known markets participants gave great reviews for Stock Market Jungle. Don't make the same mistake I made. I doubt that most of the reviewers listed in the book actually read it. The book itself adds little to anyone who is the least bit knowledgable about the financial industry. Your time would be better spent reading any one of a thousand other business/financial books.

While the basic premise of the book is that "investing world has changes and therefore so should you", is certainly true, it doesnt really bring anything original or substantially novel. The author discusses in great detail, well supported by data and analysis, the impact on different aspects or the new "rules of the jungle". Topics such as as increased appetite for speculation are well know now, but the facts behind those conclusions are explained in a detailed manner. Overall, it is an interesting treatment of the topics, though brevity is not one of the author's strong points. Dont expect to find any significant information that will alter your portfolio, but it may give you some info on how things work in stock markets and some of the trends associated with trading. Could have been a 4 or 5 star book, but the arguments and explanations are a bit too long-winded....