Despite the doomsayers' predictions of a coming depression, there are still a few people who believe the current economic recession will end soon, and they are writing books on how to take advantage of the stock market boom they expect. Their message? There is money (and loads of it) to be made in the coming bull market of the 1980s for those with a bit of foresight.
"How to Profit From the Coming Bull Market," by Max G. Ansbacher (Prentice-Hall, 1981, $12.95, 226 pp.) presents Ansbacher's view of factors that he feels add up to a coming stock market surge. By responding to arguments explaining why the market cannot rise today, Ansbacher builds a case to support his theory that the present decade will see the charging of the bulls.
He offers no get-rich-quick scheme. Instead, he has written for the long-term investor who feels that stocks are currently selling below value. With his "Five Commandments of Stock Selection" and "Four Keys to Portfolio Management," Ansbacher, a vice president of Bear, Stearns & Co., a major New York brokerage, offers thoughtful advice on the fundamentals of putting together a profitable portfolio.
Ansbacher makes good use of examples and analogies to explain the basics of playing the market. The glossary, while not extensive, covers the essential technical terms that may baffle the newcomer to Wall Street, and he devotes the final chapters to investment alternatives, such as convertible bonds and call options.
For the less-experienced investor who needs to be led by the hand through the unfamiliar and often confusing world of the stock market, other recent books offer, if not much else, a familiarization with the jargon and some of the players on Wall Street.
In "How to Cash in on the Coming Stock Market Boom," (Bobbs-Merrill, 1981, $12.95, 191 pp.), Cable News Network financial editor Myron Kandel has compiled some advice and warnings by recognized Wall Street financial experts. He lists their views on areas of potential growth and stocks that offer promise.
The chapters are short and unsatisfying, giving a taste of what goes on in the stock market, but little to sink your teeth into. Kandel does, however, offer what is perhaps the best advice to the would-be investor when he stresses a "common-sense approach." He urges the investor to be honest with himself in developing guidelines to fit his own "financial means, psychology and investment goals."
For an overdose of optimism, "The Roaring '80s on Wall Street" (MacMillan, 1981, $11.95, 238 pp.) by Ira U. Cobleigh and Bruce K. Dorfman, offers advice to the small and mid-range investor on the threshold of the coming "Maxi-Bull" market of the '80s. Cobleigh, a consultant and financial journalist, and Dorfman, an economic consultant, contend that "with the Reagan administration now in place, there are legitimate expectations for less inflation, lowered interest rates, expanded production, and a renewal of prosperity."
The book does have good points. It explains most features of the market in layman's terms, offers a comprehensive glossary and lists sample portfolios for various investors. Cobleigh and Dorfman also offer insight into areas they feel show winning potential for the '80s, such as gold, strategic mining shares, warrants and certain low-priced stocks.
For those who remain leery of the stock market but realize the necessity of developing a personal investment strategy, "How to Buy Money: Investing Wisely for Maximum Return" (McGraw-Hill, 1981, $10.95, 163 pp.) by Wayne F. Nelson, is a handy guide to most of the investment options available today.
Though he does touch on the subject of stock market investing--with advice from listing the best information sources ("the local paper's business section is essential") to "when to fire your broker"--Nelson devotes the bulk of the book to alternatives for the prudent investor.
Nelson, a vice president in Washington of Merrill Lynch, Pierce, Fenner & Smith who conducts money management seminars in the D.C. area, avoids the exuberant optimism evidenced by Kandel, Cobleigh and Dorfman. But he manages in a readable and sometimes witty style to give the reader "a fundamental understanding of traditional investments."