“First, it is hard to beat the market. If you have money to invest, the only sensible place to start is with the asumption that the market is smarter than you.” Justin Fox’s The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street brings enlightenment to the dismal science of economics. Fox is a journalist, but he understands the theories behind the Capital Asset Pricing Model (CAPM) and “efficient markets.” His clear writing and penetrating analysis shows how Warren Buffett made his billions and how lesser investors lost their shirts. If you have any interest in stocks, bonds, and investments this is a “must-read” book. The Myth of the Rational Market tells the financial history of the past 50 years with great insight and energy. It’s one of the best books on business that I’ve ever read. GRADE: A
Is it written at a fourth-grade reading/math level because that’s where we are in financial terms? I need a book that does that.
Patti, there’s not an equation in the whole book! Justin Fox is a journalist and he explains financial concepts with insight and energy. If you’re going to read one book on the economy, this should be the one.
Science of economics? I always thought it was sorcery.
Justin Fox shows that economics is more sorcery than science, Bob. And a lot of evil wizards got rich.