The Best Books on Financial Market History

Earlier this week I wrote (again) about the importance of understanding financial market history. This prompted a few people to ask for some of my favorite books on the topic. Here goes:

Devil Take the Hindmost: A History of Financial Speculation
If I had to pick just one book to read on the topic, this would be the one. Chancellor weaves history, psychology, and economics beautifully in what is also one of the better-named finance books I’ve come across.

The Panic of 1907: Lessons Learned From the Market’s Perfect Storm
The story behind the banking crisis most people probably aren’t familiar with. This book shows how primitive the financial markets were before banking regulations and the Fed came around.

The Great Depression: A Diary
This first person account of what life was like during the Great Depression is not only a lesson in financial market history but also how difficult that period in history was for those living through it. I can’t recommend this one enough.

Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies
I’m always a little skeptical about how much faith we can put into market data from the late-1800s or early-1900s but this book does a masterful job of going way, way back to show how the various markets have performed over the really long haul.

More Money Than God: Hedge Funds and the Making of a New Elite
A book about the history of hedge funds but it plays out over the decades and gives some great background on what it was like to invest in various market environments over the years and how things have evolved for investors.

The Big Short: Inside the Doomsday Machine
The definitive book about the Great Financial Crisis and subprime mortgage meltdown and one of the best non-fiction books of the past decade. Liar’s Poker by Michael Lewis is also a great account of what Wall Street was like in the 1980s.

A Short History of Financial Euphoria
Howard Marks recommended this one. Galbraith is really good and it’s a quick read on the history of bubbles.

Against the Gods: The Remarkable Story of Risk
In the conversation for best investment books ever written.

Bull: A History of Boom and Bust, 1982-2004
One of the best investment books I’ve read in some time about one of the biggest stock market booms ever.

Dow 36,000…ok just kidding.

I asked a few friends — Michael Batnick, Dan Egan, Meb Faber and Tadas Viskanta — for their list and while we overlapped on many choices here are some I missed:

 

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.