The New Reality of Wall Street by Donald Coxe, 2003, McGraw Hill $45 Cdn
Donald Coxe is an experienced money manager and strategist. When he writes "a book on investor survival", I read it
carefully. Mr Coxe very good at clarifying the big picture.
The first part of The New Reality of Wall Street ( McGraw-Hill New York) describes what happened
The last few chapters, some 80 pages, offers some practical advice about facing the challenging financial landscape ahead.
For instance, Chapter 9 is titled Setting Your Course to a Secure Retirement. And Chapter 10 is about Constructing a
Survival Pak Portfolio..."a diversified collection of asset classes". This alone makes Coxe's book well worth $45.
To give you a feel for the type of thing Coxe has written about, here are some quotations:
"[P]art of a sound retirement plan comes from owning dividend-paying stocks" 224.
"The only profit you can really count on comes in dividends." 245
"As long as the dollar remains in a bear market, gold remains a very attractive asset." 148
"Smart investors don't rely on them [forecasts]."150
"The terrain ahead offers more in the way of challenges than easy money. Yet for shrewd, patient, disciplined investors,
there will be rewards. Those rewards may seem scanty compared to the 1990s..." 181
Among the topics Donald Coxe covers well are: the U.S. dollar bear market, diversification, equity risk premium, risk,
buybacks/options, Japan, duration in bonds and stocks 242, kinds of bear markets, bonds, deflation, Canada 260, the problems
ahead 255, dividends, tips vs stocks, "elements in the outlook for this decade that should make stocks a cornerstone of their
retirement wealth planning"233.
Coxe's advice is spread out in the book. It's hard to summarize what he's saying in a few sentences
Assorted ideas:
China is a strong deflationary force 177.
Conquer paralytic fear of equities 186