Panic Profits: How to Make Money When the Market Takes a Dive
Author: John Dennis Brown
List Price: $29.95
Our Price: Click to see the latest and low price
ISBN: 0070081808
Publisher: McGraw-Hill (January, 1994)
Sales Rank: 957,205
Average Customer Rating: 3.5 out of 5
Customer Reviews
Rating: 5 out of 5
PANIC SELLOFFS ARE A CRISIS OF OPPORTUNITY. BUY!!
It seems that whenever prices are "too high", I tend to go looking for bargains in the cheap stocks department (read "losers"). Then when the whole market takes a dive, and brings even the strongest stocks down with it, I'm too frightened (or too broke) to think about throwing more money into this "beast" that ate my dreams of early retirement. This book showed me how specific events throughout the 20th century both internal and external to the market have over and over again provided excellent buying opportunities for those quality stocks you wished you had bought way back when they were so much cheaper. In a test of real life application, it gave me the historical perspective and confidence to jump in and buy at a time when everyone else was bailing out. It was largely responsible for my purchase of the two leading Internet portal stocks near their Oct 98 market crash lows; and my ability to buy the leading online "bookseller" (starts with an "A", and ends with an "mzN") at its exact bottom (less than a point) during the Feb 99 technology selloff. When applied to high quality growth stocks, "Panic Profits" offers you a fast, safe, and very simple (I love that word) approach to making big money in the stock market. Some gems of wisdom contained in this book: * "It's never too late to sell on a rally". * "Reflex rallies in the most hammered stocks offer ultra quick reliable profits". * "Rewards come from contrary action, not from sophisticated or complex strategy or analysis". * "IPO's & new ideas require more time, money, management, etc. than early investors ever expect". * "Recognize rolling declines of a bear market. Bear markets will bleed you to death - SELL!". * "Panic selloffs tend to periodically cleanse the market of weak money, and sets up for the next big advance". In my experience, the market sells off once or twice a year. "Panic Profits" will help you be prepared for the next big "opportunity", to see through your fear, and to act wisely (and profitably). It's simple. It works. I love this book.
Rating: 2 out of 5
Lacks organization
While the author has tons of documentation about panics and bear markets, he fails to draw conculsions and suggestions together. Advice is scattered hither and yon. It looks like a collection of short pieces stuck together. It would have been much more useful to summarize the findings and organize the evidence behind it. This book doesn't know if it is history or "how to" book. However, it is the best (maybe only) summary of past panics and bear markets so it is good to have in an investor's library.
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