Surviving the Coming Mutual Fund Crisis: How You Can Take Defensive Measures to Protect Your Money [Paperback]

Donald Christensen (Author)

Book Description

Publication Date: October 1995

A leading Wall Street investment expert predicts the rapid collapse of the mutual fund market and explains when investors should pull out of it, why, and how they can begin to protect their money now.

Editorial Reviews

From Publishers Weekly

Christensen (Investing with the Insiders), publisher of the Wall Street Journal's newsletter, the Insider Outlook, here presents a jeremiad about mutual funds. He debunks the premises of the immensely popular funds-more then 40 million investors and assets exceeding $2 trillion-regarding portfolio diversification, strategies, managers and profit opportunities for the "little guy." He asserts that the mutual fund is not always more efficient "and the promoters know it," and he predicts that a mutual fund crisis will probably come to a head in 1996 or 1997. Christensen advises individuals to invest instead in CDs, Treasury bills or government securities. His controversial theses will likely trigger debate on Wall Street.
Copyright 1994 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

From Library Journal

According to Christensen, the publisher of the Wall Street Journal newsletter, The Insider Outlook, pressure to provide higher returns is pushing mutual fund managers to adopt risky investment techniques such as leverage, short selling, and investing in security derivatives. Holders of mutual funds would face ruin if these practices led to crises similar to the 1890 Baring Crisis in Britain and the collapse of U.S. investment trusts in the 1920s. Adding to the alarm is the relaxation of mutual fund disclosure requirements by the Securities and Exchange Commission. Pointing out that mutual funds are often sold by commissioned representatives, Christensen provides novice investors with advice on bailing out of dangerous funds before a crisis hits. Despite the alarmist tone, he gives useful advice. For general collections.
Joseph Barth, U.S. Military Acad. Lib., West Point, N.Y.
Copyright 1994 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

Product Details

• Paperback: 272 pages
• Publisher: Little Brown & Co (P) (October 1995)
• Language: English
• ISBN-10: 0316137820
• ISBN-13: 978-0316137829
• Product Dimensions: 8.1 x 5.3 x 0.8 inches
• Shipping Weight: 10.4 ounces
• Average Customer Review: 4.8 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #1,679,324 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

1 of 1 people found the following review helpful:

4.0 out of 5 stars THIS STOCK MARKET BUBBLE WILL SOON BURST!, May 6, 1998

By 

[e-mail] (Beverly Hills, CA.) - See all my reviews

This review is from: Surviving the Coming Mutual Fund Crisis: How You Can Take Defensive Measures to Protect Your Money (Paperback)

This is a book that should be read by anyone that considers themselves to be PRUDENT investors. When people say they are LONG-TERM investors, do they really know what they are saying? What do they mean? Do they realize that a dollar invested today may be worth 1.25 in 6 months -(due to the mania of this market) - but only worth 50 cents in 5 or 10 years? It could likely be worse than that. These mutual funds are being run by young hot shots that have no concept of doing anything but putting "money to work" (buying) due to the massive influx of money pouring in over the years. All reasonable valuation models have been trashed and "investors" have become extremely complacent because it's been so easy to "make" money. Sorry, it's not that easy or realistic! The selling will soon come in waves. Be wise and prepare youself for what will go down in history as the worst bear market ever, followed by a worldwide depression. Best of luck to all! P.S. I also recommend a book called "THE WARNING" by Joseph Granville and "THE GREAT CRASH of 1929" by John Galbraith. The parallels between then and now are too striking to ignore. So don't be one of the mindless herd.................

1 of 1 people found the following review helpful:

5.0 out of 5 stars History's lessons are often learned the hard way..., April 17, 1998

By A Customer

This review is from: Surviving the Coming Mutual Fund Crisis: How You Can Take Defensive Measures to Protect Your Money (Paperback)

Just as speculators were lured into joint stock companies centuries ago (e.g., Tulipomania, South Sea Bubble), and investors of all kinds were seduced by unrealistic promises of stock pools and investment trusts of the 1920s and the "Go-Go Mutual Fund Mania" of the 1960s, so too are today's savers-turned-speculators being led down a path toward financial tragedy by the "New Era", "buy-and-hold" mania that has gripped the public's imagination for the past seven years. Christensen warns investors of the pitfalls and potential disaster that awaits anyone who thinks that mutual funds are a good way to diversify against risk. Mutual funds use derivatives, borrow from one another, engage in margin speculation, and are increasingly less shareholder friendly as massive inflows of money from uninformed savers breed arrogance and abandonment of risk aversion by mostly inexperienced, starry-eyed portfolio managers under 35 years of age. When the public discovers stocks and other financial assets, the risk becomes extreme and the party is almost over. Don't be one of those caught blaming the portfolio manager, the government, or Wall Street, when the blood starts flowing and you lose your life savings in a matter of a year or two.

2 of 3 people found the following review helpful:

5.0 out of 5 stars Excellent, hard-hitting, thought-provoking, wake-up call, September 5, 1999

By A Customer

This review is from: Surviving the Coming Mutual Fund Crisis: How You Can Take Defensive Measures to Protect Your Money (Paperback)

I can't understand why this book is listed out of print. Why aren't more people demanding this book? Maybe there aren't enough investors yet who are worried about the safety of their money.

Just recently (Sept 99) a few money market funds ran into a bit of trouble - exactly the kind of trouble described in this book. Are you still assuming that your money market fund is safe and that a fixed NAV of $1 will be maintained?

The book definitely opened up my eyes to other alternatives for places to put money. Because of this book I've rediscovered alternatives like Treasury Bills and savings bonds.

However I did question the author's suggestions for a self-directed portfolio containing municipal bonds and widely held stocks. After the Orange County, California fiasco I would not consider municipal bonds. And I would question the idea of holding the same widely-held stocks that the institutional investors hold.