Monthly Archives: January 2017

Reminiscences of a Stock Operator; an Investment Classic by Edwin Lefevre

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Reminiscences of a Stock Operator is a 1923 roman à clef by American author Edwin Lefèvre which is the thinly disguised biography of Jesse Lauriston Livermore. The Wall Street Journal described the book as a “classic”, it was ranked #15 on ‘Fortune’s 75 The Smartest Books We Know’, and Alan Greenspan said it is “a font of investing wisdom.”

The Art of Speculation
First published in 1923, Reminiscences is a fictionalized account of the life of the securities trader Jesse Livermore. Despite the book’s age, it continues to offer insights into the art of trading and speculation . In Jack Schwager’s
Market Wizards, Reminiscences was quoted as a major source of stock trading learning material for experienced and new traders by many of the traders who Schwager interviewed.

Plot
The book tells the story of Livermore’s progression from day trading in the then so-called “New England bucket shops ,” to market speculator, market maker, and market manipulator, and finally to Wall Street where he made and lost his fortune several times over. Along the way, Livermore learns many lessons, which he happily shares with the reader.

Quotes
“ It took me five years to learn to play the game intelligently enough to make big money when I was right. ”
“ It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine–that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.”

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Why Most Economists Are So Worried About Trump by Justin Wolfers

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If the November election was intended as a rejection of elites, of expertise and of the sort of technocratic advice that economists often give, it’s a punch that has landed.
In somber analyses, huddled hallway conversations and pointed asides during endless panel sessions at the annual
conference of economists last weekend in Chicago, the major theme was a sense of anxiety about the incoming Trump administration. This foreboding was evident in roughly equal measure among conservative and liberal economists. But it is in direct contrast with the feelings of small-business owners and Wall Street traders.

Most of my fellow economists remain convinced that university-trained economists can offer useful insight to the new administration. Few believe it will matter. The life force that animates the econ tribe — that what they’re doing matters — has been drained away. Few see useful channels for influence. Partly this reflects President-elect Donald J. Trump ’s legislative plans. On issues like restricting trade, directly intervening to assist specific industries or corporations, targeting tax cuts to the wealthy, his agenda stands as a rejection of the advice that mainstream economist have typically offered. And partly this reflects Mr. Trump’s appointments. Few of his key economic advisers have any economics training, and the only official who identifies as an economist — Peter Navarro, who earned a Harvard Ph.D. in economics and will head up the newly formed National Trade Council — stands so far outside the mainstream that he endorses few of the key tenets of the profession.

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