Monday, August 14, 2006

Why markets trend

Came across an interesting review of a book called Taming the Lion by Richard Farleigh. This title was included in a recent Telegraph "summer reading" column by Tom Stevenson, and a detailed review of the book is available in an earlier Investment column.

While Stevenson notes that book is subtitled "100 Secret Strategies for Investing", he has focused on Farleigh's ideas about the nature of price trends in financial markets. In Farleigh's estimation, markets not only exibit trending behavior (thereby refuting efficient markets theory), the trends are driven by fundamental and psychological factors that are unlikely to change.

For more on Farleigh's book, and others in Stevenson's recent reading list, see the links above.