Customer Reviews

Sector Trading: A Year in Exchange Traded Funds

5 star:		(1)
4 star:		(3)
3 star:		(2)
2 star:		(0)
1 star:		(1)

 

 

I'm professionally obligated to read a lot of books on finance, and it's rare that one comes along that's both enjoyable to read and teaches me something I didn't know. Bernstein's "Sector Trading" manages to do both. The structure of the book is a week-by-week review of the financial and emotional ups and downs of a year in ETF (Exchange Trade Funds) trading. Studying this, you learn lessons about the kinds of decisions an ETF or index trader must make if he wants to succeed, but you also get a sense of the psychology, both individual and market, that accompanies this kind of trading. Most books on trading that I've read either serve up a dry, indigestible mound of statistics and numbers, or decend into raw psychologizing. Bernstein eschews these typical strategies, and instead grapples with the nuances of particular circumstances in a way that's neither dull nor trite. On the negative side, the index really isn't very helpful, and a book arranged this way could use a decent index. Also I would like to have seen more time could be spent on counter-trend trading strategies. Still, overall, a good and helpful book for learning the mechanics and psychology of sector trading.

Interesting. I heard Bernstein talk at nyc ETF evolution 2007 on International Exposure and emerging markets and bought this book. Mostly a collection of what moved ETFs on a weekly basis in a particularly volatile year. Carbon based economy, geo-political, biotech, those kind of macro analytics. Only a small nod to quants. But with the world outlook as it is, it seems these kinds of issues may be driving things for awhile. I would have liked a lot more focus on the macro analysis than he fit in here, but then it would be an expensive textbook. The breakdown into macro-indicators by week is unique and could be a worthy tool if developed more.

I was disapointed with the book. I was hoping for a varifiable process that I could follow and test. Instead I got guesses as to what happened to a market on each specific day. The usual kind of media invented stuff that you get when the pros can't figure out what really happened with the market. I got through about thirty days of the year and gave up[

"Sector Trading..." shows how selection of ETF baskets as an investment strategy works both in the short term and long term. By writing specifically and enthusiastically about ETFs, Bernstein throws light onto this newest investment mechanism that is increasingly popular, even among individual investors such as myself. I especially liked the connections made between ETF investing and financial sectors trading and daily news events on the world stage. The charts are also a significant new tool for me to try to use. Bravo.

I enjoyed this book, which is a light easy read which shares the thoughts of the author as he trades ETFs each week for one year. Sadly, his performance for the year shows the weakness in his methods, which he reviews at the end of the book. (Which is good, and well worth studying). I professionally design sector rotation portfolios using ETFs, and will now require many of our staff to read this book so that they understand why we do what we do.

Don't expect much from this book except a novices personal experience trying to do weekly trades

Good book, helpful for understanding the ETF funds. Not helpful with charts of past performance or strategy. Good if you buy it used!After the market crash, some of the info is not up to date. General information useful if in beginning stage of development.