The Only Three Questions That Still Count: Investing By Knowing What Others Don't, 2nd Edition
From investment expert and long-time Forbes columnist Ken Fisher comes the Second Edition of The Only Three Questions That Count. Most investors know the only way to consistently beat the markets is by knowing things others don't. But how can investors consistently find unique information in an increasingly interconnected world?
In this book, Ken Fisher shows investors how they can find more usable information and improve their investing success rate—by answering just three questions.
Packed with more than 100 visuals and practical advice, The Only Three Questions That Count is an entertaining and educational guide to the markets. But it also provides a useable framework investors can use now and for the rest of their investing careers.
- CNBC's Mad Money host and money manager James J. Cramer says the book "may be the single best thing you could do this year to make yourself a better investor"
- Steve Forbes says, "Investors will find this brilliant book an eye-opening, capital-gains producing experience"
The key to improving investing results is daring to challenge yourself and whatever you believe to be true, and Ken Fisher explains how in his own inimitable style.
1 Question One: What Do You Believe That Is Actually False? 1
If You Knew It Was Wrong, You Wouldn't Believe It 1
The Mythological Correlation 8
Always Look at It Differently 15
When You Are Really, Really Wrong 21
2 Question Two: What Can You Fathom That Others Find Unfathomable? 31
Fathoming the Unfathomable 31
Ignore the Rock in the Bushes 32
Discounting the Media Machine and Advanced Fad Avoidance 33
The Shocking Truth About Yield Curves 38
What the Yield Curve Is Trying to Tell You 49
The Presidential Term Cycle 57
3 Question Three: What the Heck Is My Brain Doing to Blindside Me Now? 67
It's Not Your Fault—Blame Evolution 67
Cracking the Stone Age Code—Pride and Regret 72
The Great Humiliator's Favorite Tricks 85
Get Your Head Out of the Cave 87
4 Capital Markets Technology 95
Building and Putting Capital Markets Technology Into Practice 95
It’s Good While It Lasts 100
Forecast With Accuracy, Not Like a Professional 105
Better Living Through Global Benchmarking 113
5 When There’s No There, There! 131
Johns Hopkins, My Grampa, Life Lessons and Pulling a Gertrude 131
In the Center Ring—Oil Versus Stocks 136
Sell in May Because the January Effect Will Dampen Your Santa Claus Rally Unless There Is a Witching Effect 148
6 No, It’s Just The Opposite 155
When You Are Wrong—Really, Really, Really Wrong 155
Multiplier Effects and the Heroin-Addicted iPod Borrower 163
Let’s Trade This Defi cit for That One 170
The New Gold Standard 175
7 Shocking But True 185
Supply and Demand . . . and That's It 185
Weak Dollar, Strong Dollar—What Does It Matter? 200
8 The Great Humiliator and Your Stone Age Brain 213
That Predictable Market 213
Anatomy of a Bubble 221
Some Basic Bear Rules 229
What Causes a Bear Market? 244
9 Putting It All Together 251
Stick With Your Strategy and Stick It to Him 251
Four Rules That Count 257
Finally! How to Pick Stocks That Only Win 274
When the Heck Do You Sell? 281
Conclusion: Time to Say Goodbye 289
Appendix A: Causal Correlations and the
Correlation Coeffi cient 295
Appendix B: News You Can’t Use 299
Appendix C: Greater Fools 301
Appendix D: I Hate Funds 303
Appendix E: Annualized Versus Average 307
Appendix F: The Wizard of Oz and an OZ of Gold 309
Appendix G: 1980 Revisited 313
Appendix H: Popular But Problematic 317
Appendix I: Covered Calls—Covering What? 321
About the Authors 329
Lara Hoffmans is a content manager at Fisher Investments, managing editor of MarketMinder.com, a regular contributor to Forbes.com and coauthor of the bestsellers The Only Three Questions That Count, The Ten Roads to Riches, How to Smell a Rat, Debunkery and Markets Never Forget (But People Do).
Jennifer Chou graduated from the University of California with a BS in finance. She was a research analyst of global capital markets and macroeconomics at Fisher Investments.