Enduring attraction of ‘how to beat the market’ books
BOOKS that offer financial advice have enduring appeal because they speak to readers’ emotions in a way that get-rich-quick schemes cannot, research suggests.
Researchers at Edinburgh University found that while there is little evidence that systems for beating the stock market really work, guidebooks offering such advice have been popular for centuries.
A survey of texts, dating back to the mid-1700s, reveals the books have been successful because they help readers feel in control of their lives. Researchers found that, regardless of the period, content tended to appeal to readers’ entrepreneurial fantasies and help them imagine a different life for themselves.
Financial advice books and guides since the 18th century have amassed a huge readership.
Researchers from the universities of Southampton, Edinburgh, Manchester and Lancaster pored over 1,000 titles to chart the history of personal finance literature, as it has developed in Britain and the US.
They examined literature published over three centuries to assess the language used and what kind of reading experience they give. The titles included the forerunner of modern-day advice manuals, Every Man His Own Broker by Thomas Mortimer, published in the 1760s.
Titles surveyed included books published during the US boom of the 1920s, the volatile 1980s and the ill-fated dot-com bubble of the late 1990s.
The study team will showcase their findings at a public event at Edinburgh University.
The researchers say the project will improve understanding of the historical and present-day functions of financial advice on wealth creation, which could help people become more discerning investors.
Dr Paul Crosthwaite, of
Edinburgh University’s School of Literatures, Languages and Cultures, said: “Books purporting to make their readers wealthy – often through investments in stocks or other financial assets – are perennially popular, but the history of this genre is only now being uncovered.”
Lead researcher Professor Nicky Marsh of the University of Southampton, added: “Financial advice is an aspect of economic culture that needs to be more systematically researched and the History of Financial Advice project helps meet this demand.”