Thoughts from the Frontline

The 22 Rules of Trading

By John Mauldin

November 28, 2003

The 22 Rules of Trading
Dividends Do Matter
The Ice Age
New York, New York

This week we look at two very intriguing studies, one from James Montier where, safely perched in England, he forecasts future real returns on the US stock market. Then we give you Master Trader Dennis Gartman's 22 Rules of Trading, many of which you can apply to all sorts of life situations, as well as the markets.

I really need to thank these two gentlemen for letting me use their work almost verbatim, as I am finishing the last (!) chapter of my book this weekend and really need every hour I can get (see more below). In any case, readers will be well served by these two short epistles.

Montier is the Global Equity Strategist for Dresdner Kleinwort Wasserstein and also the author of the well reviewed and very readable (thus unusual in its field) book called Behavioural Finance - Insights Into Irrational Minds and Markets . He writes a weekly thought piece for institutional investors, and I edit his letter from this week. He gives us a forecasting model for the future real returns for stocks from the US, the UK,…

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