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

~ (Author) "From the beginning, the language of the American stock market has included references to a colorful menagerie of creatures and critters, conjuring up vivid imagery..." (more)
Key Phrases: stock market jungle, more active investing approach, alternative investment sector, Wall Street, Dow Jones, New York Stock Exchange (more...)

Editorial Reviews

Review

"A sophisticated trip through the ever-changing jungle." --Barton Biggs, Managing Partner, Traxis Partners "Michael Panzner, an experienced investment professional, has written a great book! It contains so many interesting observations supported by well-selected figures that every investor will gain insights that will serve him well for the rest of his life!" --Marc Faber, Managing Director, Marc Faber Limited, Editor, Gloom, Boom & Doom Report "This book should be required reading for both old and new buy-side and sell-side institutional traders. How refreshing! An author who knows what he is writing about ... and can write. The New Laws of the Stock Market Jungle will be required reading in my offices." --Steve Leuthold, Chairman, Leuthold Weeden Capital Management, Chairman, The Leuthold Group "'This time is different' may be the most dangerous phrase in the investment lexicon, but sometimes things really are different. In this valuable book, Michael Panzner applies his encyclopedic knowledge of the markets over the last three decades to analyzing the many crucial ways in which investing today is, indeed, different than ever before." --Mark Hulbert, Editor, Hulbert Financial Digest, Columnist, CBS Marketwatch "The New Laws of the Stock Market Jungle is definitely not for dummies. This sophisticated but lively book is for serious investors who want an insider's perspective on making money in uncertain markets." --Jon Markman, Contributing Editor, CBNC.com on MSN Money, and Senior Investment Strategist and Portfolio Manager, Pinnacle Investment Advisors "Stock market speculation is both an art and a science and with this book, Michael Panzner explains just why this is so in a way practical and thorough enough to actually help you invest and trade more intelligently. What more could anyone ask?" --Peter Navarro, author of If It's Raining in Brazil, Buy Starbucks and When the Market Moves, Will You Be Ready? "Over the last decade, important changes in technology and trading rules have transformed the way that Wall Street operates, while new incentives for institutional investors have altered their behavior and our markets. Panzner's book identifies new opportunities and threats and offers insights that can help investors to profit in the years ahead." --John Nofsinger author of Investment Madness and Infectious Greed "Panzner's book reveals many of the tools and tricks we professionals use every day to make money. If you wonder why the 'little guys' are always at a disadvantage and why many commentators and academics can't seem to explain these markets, it is because they are unaware of these factors. Honestly, I wish he had not said a thing." --Robert Jafek, Principal, Torrey Pines Capital, and former partner, Nicholas-Applegate Capital Management "As an equity dealer for a fund group managing nearly $30 billion, I have used Michael Panzner's market insights and expertise on a daily basis to help me trade effectively. Now, through this book, his 20 years of market experience are available to everyone. From the seasoned investment professional to the casual investor, anyone looking to gain a better understanding of how new market forces are changing the dynamics of investing today, will benefit from reading this book." --Ronald J. Lysek, Jr. International Equity Trader, Franklin Mutual Advisers, Inc. "This 'bible' on trading and markets is packed with the most up-to-date information. I recommend this book to anyone who wants to understand the intricacies of today's stock market environment." --Peter Tropaitis, Vice President, Senior Global Equity Trader, Federated Investors

Product Description

In recent years, the stock market has undergone revolutionary change at virtually every level: new players, new technologies, new information flows, and new macroeconomic conditions. These changes are radically impacting investors, whether they know it or not.

Now, you can profit from the changes––instead of being victimized by them. Wall Street insider Michael J. Panzner will show you how. Panzner reveals how falling transaction costs and a barrage of data are transforming traditional investment patterns, and how stocks are increasingly being bought and sold like commodities. Discover the impact that electronic trading, instant messaging, and hedge funds are having on intraday volatility and short-term direction. Learn how an era of "boom and bust" have altered investor behavior and risk preferences, why today's market is increasingly emotional, and why many traditional indicators simply don't work anymore.

From the growing role of derivatives to the increasing unpredictability of seasonal and cyclical patterns, this book takes you "under the hood" of today's equity markets... so you can develop a winning investment strategy for today's new realities.

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Product Details

• Hardcover: 320 pages
• Publisher: FT Press (July 9, 2004)
• Language: English
• ISBN-10: 032124785X
• ISBN-13: 978-0321247858
• Product Dimensions: 9 x 6.2 x 1.2 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 3.5 out of 5 stars  See all reviews (11 customer reviews)
• Amazon.com Sales Rank: #925,247 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

18 of 20 people found the following review helpful:

2.0 out of 5 stars Longing for the good old days, May 29, 2005

By	Mark Mills (Glen Rose, TX USA) - See all my reviews (REAL NAME)

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.

17 of 19 people found the following review helpful:

5.0 out of 5 stars The New Laws of the Stock Market Jungle, July 22, 2004

By	R. Tompkins (NJ) - See all my reviews

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.

14 of 16 people found the following review helpful:

5.0 out of 5 stars Essential Reading for Serious Investors, July 26, 2004

By	Stock Trader (Boston, MA) - See all my reviews

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.