Put these 20 books on your Christmas wishlist if you want to understand investing and conquer bear markets, according to top Wall Street experts
We asked investors for a list of the books that have helped them to better understand and invest in stock market crashes.
Top Wall Street stock pickers shared 20 books to put on your Christmas wishlist if you want to better understand bear markets. Bryan R. Smith/Getty Images 2022 has been a tough year to make money in the stock market.Equities suffered a broad and deep sell-off this year, with investors panicking about a potential recession, rising interest rates, and Russia's invasion of Ukraine.Growth stocks have led the downturn, with the Nasdaq down 32%. Insider asked a number of veteran Wall Street strategists which books have helped them better understand bear markets, recessions, and stock market crashes. They shared 20 top picks, ranging from Michael Lewis's "The Big Short," which tells an important story of the 2008 financial crisis, to "Reminiscences of a Stock Operator," a 1923 novel written by the journalist Edwin Lefevre. "Stocks for the Long Run" by Jeremy Siegel Amazon In "Stocks for the Long Run," famed markets guru Jeremy Siegel shares his ultimate stock-picking strategies, with a particular focus on the impact of the 2008 financial crisis. "It's a must-read primer for investing in the stock market," Bernstein Private Wealth Management's co-head of investing strategies Alexander Chaloff told Insider. "You don't buy stocks for a month, or a quarter, or even a year. You buy them for the long run. "Recommended by: Nancy Tengler, chief executive of Laffer Tengler Investments; Alexander Chaloff, co-head of investment strategies at Bernstein Private Wealth Management "When Genius Failed" by Roger Lowenstein Amazon Roger Lowenstein's "When Genius Failed" chronicles the rise and fall of hedge fund Long-Term Capital Management. In four years, the $100 billion fund suffered enormous losses, not only sending ripples through Wall Street, but the world's financial system at-large. "It's good to study other people's mistakes," Court Hoover, head of research at Pervalle Global, said. "There's an old quote that says 'Every trade either makes you richer or wiser.' When you get something right, there's a tendency not to think about it. "Recommended by: Court Hoover, head of research at Pervalle Global "Boom and Bust: A Global History of Financial Bubbles" by John D. Turner and William Quinn Amazon In "Boom and Bust," authors Quinn and Turner dive into the history of financial busts to explain the actions investors and speculators took leading up to these crashes. "The authors use creating fire as an analogy to bubbles. Oftentimes, new technology acts as the spark to set things in motion," said Garrett Aird, Northwestern Mutual Wealth Management Company's vice president of investment management & research.By providing this historical context, the book highlights the three key elements of a financial bubble to help future investors predict an upcoming economic decline.Recommended by: Garrett Aird, vice president of investment management & research at Northwestern Mutual Wealth Management Company "The Dow Jones-Irwin Guide to Modern Portfolio Theory" by Robert Hagin Amazon Robert Hagin's "The Dow Jones-Irwin Guide to Modern Portfolio Theory" is an encyclopedia of risk management, portfolio strategies, and asset valuation. Hagin, a former executive director at Morgan Stanley, breaks down investing and financial concepts, recalling lessons he learned in his 40-year career on Wall Street. "In my opinion, it's a master class of individual investment analysis and portfolio allocation, which was really pivotal in my growth as an investor and capital allocator," Franzen told Insider in a statement. Recommended by: Caleb Franzen, senior market analyst at Cubic Analytics MI Exclusive Markets Stocks to Buy