“Sell in May, and then go away.”
It's an old saying, but this Wall Street adage is as relevant today as when it was first uttered. It worked once again during the market decline that began in 2008. In The Seven Rules of Wall Street, Sam Stovall, master investment strategist and expert on stock market history, presents seven familiar sayings that not only convey enduring truths but also serve as superb investment strategies.
In this engaging guide, Stovall subjects his chosen sayings to the facts of history and to his own personal experience. When it comes to building a portfolio, for instance, should you “let your winners ride, but cut your losers short”? Absolutely. “On average,” Stovall writes, “the 'winners' beat the market by a near two-to-one margin. The winners also beat the losers most years: seven out of every 10 years.”
Other Wall Street one-liners that emerge as timeless truisms include:
To support his conclusions, Stovall complements his sharp insight with the results of detailed back-testing, as well as tables and charts drawing on decades of stock market data.
A fun and lively read, The Seven Rules of Wall Street provides an abundance of wisdom in remarkably few words--proving that investing books can be as entertaining as they are educating.
Markets go up. Markets go down. But the Seven Rules of Wall Street never lose their value.
“In my many interviews with Sam Stovall over the years, the depth of his common-sense strategies for investment success was always apparent. Happily, he has put his expertise into writing, which can serve as an invaluable guide for investors.” -Paul Kangas, anchor, Public Television's “Nightly Business Report”
“Sam assembles his encyclopedic knowledge of stock market history into a perspective that provides invaluable, practical guidance for making investment decisions.” -Wallace F. Forbes, CFA, president, Forbes Investors Advisory Institute
“With wit and wisdom, Sam Stovall adds more punch to seven old famous Wall Street one-liners.” -Ralph J. Acampora, CMT, Director of Technical Analysis Studies, New York Institute of Finance
“The Seven Rules of Wall Street zeros in on how to put these proven market postulates to work for your portfolio.” -Yale Hirsch, founder, and Jefrey A. Hirsch, editor, Stock Trader's Almanac
“Since I have known the author from the day he was born, I feel qualified in making a helpful comment on his new book. . . . Simply stated, if a serious reader remembers each point and puts it to use, he or she should have a good chance of enhancing performance.” -Robert H. Stovall, CFA, global investment strategist, Wood Asset Management
