Book Review – “Markets Never Forget But People Do” by Ken Fisher

Markets Never Forget (But People Do) - Book Cover

“Markets Never Forget But People Do” is a book showcasing the historical perspective of the stock market. By re-looking into history, we can convince ourselves why this time is not different unlike what the media portrays when the economy is in the doldrums. Instead of me explaining further what this book is about, why not listen to the author himself explaining it?

A summary of the contents of the book:

  1. It’s not a new normal unlike what the media says and this time is not different. History tells us so.
  2. Stocks can rise even though unemployment is high
  3. Double-dip is always feared after a recession but rarely seen throughout history
  4. Why the V-shaped recovery happens after a recession
  5. Third year after a recession are usually ‘pause’ years where the market doesn’t rise that much
  6. Why volatility is good and why we don’t have to fear the ‘black swan’ events
  7. Government debt and how to see if a country is really in need of default. The way to see government debt is to determine whether the debt is affordable to be paid. Currently, the interest on the US debt is very affordable compared to history.
  8. US politics and investing
  9. It’s a global world and how countries affect each other
Below is a video on unemployment rate and the rising stock market after a recession.

Every serious investor should read this book!

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