Super Boom from Wiley Publications (Book Review)

SUPER BOOM
Why the Dow Jones Will Hit 38,820 and How You Can Profit From It
By Jeffrey A. Hirsch

My Review:

Many years ago I used to work in the Financial Industry. I spent about 10 years there and I learned a little bit about how the Stock Market works and also about the industry in general.  There are essentially two types of Investment Professionals.  First, you have the Fundamentalists , who study company financial ratios,  portfolios and economic forecasts.  Second, the Technical Analysts who pay little attention to the economy and instead analyze charts and develop trading strategies based on historical patterns.

In his new book “Super Boom”, I found the author, Jeffry Hirsch to be a combination of both these investor types.  Mr. Hirsch appears to be studying both economic fundamentals while at the same time relying heavily on historical charts to come up with just the right strategy to predict when the Stock Market will hit its absolute low point and open the door to a new trading frenzy.

Jeffery Hirsch is the Editor in Chief of the Stock Trader’s Almanac.  He makes frequent appearances on CNBC, CNN, Bloomberg and many other media outlets.  He is also the son of the famous Yale Hirsch, who correctly predicted the last Stock “Super boom” in 1976.  This incredible rise in the market seemed nearly unstoppable until it was eventually stifled by the dot com crash in 2000.

In this book Mr. Hirsch provides an in-depth analysis of his blockbuster super boom forecast introduced last October in the 44th annual edition of the Stock Trader’s Almanac.  He spends a great deal of time discussing the Stock Market’s tendency to move in waves.  He backs up his theories with historical examples of market trends during times of boom and bust.  He describes the overall effect of inflation on the economy and the market and cites graphical examples of market patterns during times of war, peace and technical innovation.  He goes on to explain a variety of historical political and economical events and their impact on the market during both boom times and bust times.

Mr. Hirsch considers all of this historical data and charts out a pattern of timing for each boom and bust period along with the percent gain or loss on the market.  His theory is that we are on the verge of another market super boom similar to the one that started after the oil crisis in the 70’s. He then develops a trading and timing strategy for a multitude of funds and investments.   He again uses a lot of tables and charts to back up his investment model.

Personally, I had a hard time following the book, but I’m not a Stock Market Analyst either.  His historical descriptions of politics, public sentiment and the economy were somewhat interesting, but he lost me on some of the more comprehensive economic details such as the C.P.I.

I’d recommend this book to a Technical Analyst or Economic Forecaster, but probably not the average reader.  I will say that Mr. Hirsch seems to have a very extensive knowledge of market cycles and could very well be correct in his theory.  It gave me a small sense of optimism and I hope he is right.

This book is published through Wiley.  It is available from Amazon.com in both hard cover and Kindle format.

Posted by: on May 6, 2011 under Product Reviews & Giveaways

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