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Don’t-miss reads for investors

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It’s not too late to make some summer reading recommendations, and a quick review of my bookcase turned up some titles I think would be valuable for any investor. These books cover topics ranging from a detailed explanation of how the markets really work to the basic benefits of financial planning and some of the common behavioral errors investors make. Each book holds many helpful insights, and each is well worth the investment.

“Market Sense and Nonsense”

While not a book for novice investors, Jack Schwager’s “Market Sense and Nonsense: How the Markets Really Work (and How They Don’t)” is still an accessible read for investors interested in learning the truth behind the way many people think the markets work.

Schwager, who breaks his book into 21 short chapters, provides an education on many important facts and myths about the investment management business. He does so in a concise and entertaining way. The sections on measuring risk, understanding correlation (an often misunderstood topic) and how the use of leverage affects risk and return are particularly good.

Read the rest of the article on CBS News.

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