Bull!: A History of the Boom, 1982-2004

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Harper Collins, Oct 21, 2003 - Business & Economics - 486 pages
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In Bull!, Maggie Mahar tells the sweeping tale of the Great Bull Market of 1982–1999, a legendary run-up that pulled the entire nation into its gravitational field.

Mahar lays out the origins of the boom and takes the reader behind the scenes, on Wall Street, on Main Street, and in Washington, letting him see the story through the eyes of the fund managers, market gurus, analysts, politicians, business journalists, and 401(k) investors who, together, helped create the longest-running bull market in U.S. history. Some were touts; others were true believers. On the sidelines, a Greek Chorus of seasoned professionals tried, vainly, to describe the emperor's new clothes.

Filled with colorful portraits of many of the central figures of the boom years -- Alan Greenspan, Henry Blodget, James Cramer, Abby Joseph Cohen -- Bull! draws together a complex cast of characters, illuminating the web of relationships that kept the market aloft.

More than a financial history, Bull! is a lively, often witty social history of the stock market that became a part of popular culture. It is also the tale of individual investors, which chronicles the intimate stories of ordinary people -- housewives and college professors, salesmen and waitresses -- who got caught up in the excitement and then watched their life savings drain away.

How did it happen that the very real risks of investing in stocks were forgotten? Mahar explodes the myth of "stocks for the long run," explaining how the market's promoters crunched the numbers to create the illusion that if an investor stays in the casino just a little longer, he is guaranteed to come out a winner. Casting Warren Buffett in a new light, she explains how a value investor is, in the end, a long-term market timer who understands that success depends on how much you pay when you get into the market -- and when you get out. By putting the bull market of 1982–1999 in a larger historical context, she shows how, over time, longtime bull markets beget longtime bear markets.

The future defies prediction, but the history of financial markets makes one thing clear: markets always revert to a mean. Taken as a single story, Bull! is both an illuminating history and a cautionary tale about investing. Analyzing the economic and psychological forces that drive financial cycles, Mahar shows how an extraordinary influx of cash and credit, combined with the obsessive attention of a new financial media, created a cult of equities. Challenging the notion that stocks always outperform all other investments, she reveals why many of Wall Street's most experienced investors believe that the 21st-century investor needs to throw out the old rule book and make a new beginning as he plans for his financial future.

No investor should keep his or her money in the stock market without first reading this book.

 

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User Review  - jcopenha - LibraryThing

I loved this book. It covered all the players of the stock market bubble and crash. It made it clear that it wasn't just the crazy dot.com that made it happent but a lot of people getting sucked into ... Read full review

Bull!: a history of the boom, 1982-1999: what drove the breakneck market--and what every investor needs to know about financial cycles

User Review  - Not Available - Book Verdict

Financial journalist Mahar has written a comprehensive history of the 1982-99 bull market in U.S. stocks. She explains that this bull market got its initial impetus from both the undervaluation of ... Read full review

Contents

Chapter 2The Peoples Market
17
Beginnings 196189
33
Chapter 4The Curtain Rises
48
Chapter 5Black Monday 198789
61
Chapter 6The Gurus
81
Chapter 7The Individual Investor
102
Chapter 8Behind the Scenes
123
The Media Momentum
151
The New Economy 199698
237
Chapter 15The Miracle of
254
The Final RunUp 19982000
267
Chapter 18The Last Bear Is Gored
304
Chapter 19Insiders Sell
317
A Final Accounting
331
What
353
Notes
385

Chapter 10The Information Bomb
175
ACaseStudy
193
Chapter 13The Mutual Fund
217
Index
467
Copyright

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About the author (2003)

Maggie Mahar is the author of Bull! A History of the Boom and Bust, 1982–2004, a book Paul Krugman of the New York Times said "makes a devastating case against the contention that the market is almost perfectly efficient." In his 2003 annual report, Warren Buffett recommended Bull! to Berkshire Hathaway's investors. Before becoming a financial journalist in 1982, when she began to write for Money magazine, Institutional Investor, the New York Times, Bloomberg, and Barron's, Mahar was an English professor at Yale University. She lives in New York City.

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