Investing in U.S. Financial History: Understanding the Past to Forecast the Future

by Mark J. Higgins

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Awarded Bronze Medal in 2024 Axiom Book Awards in the “Personal Finance/Retirement Planning/Investing” category

Investors who ignore the past are lost in the present and blind to the future.

Most people rely only on their life experience to make investment decisions. This causes them to overlook cyclical forces that repeatedly reshape economies and markets. Investing in U.S. Financial History fills this void by recounting the comprehensive financial history of the United States of America. It begins with Alexander Hamilton’s financial programs in 1790 and ends with the Federal Reserve’s battle with inflation in 2023.

Authored by Mark Higgins, an experienced investment advisor and financial historian, this book will help

• Understand key drivers of financial crises and the principles for managing them.

• Recognize warning signs of speculative manias that lead to asset bubbles.

• Understand why few investors outperform market indices and why index funds are preferable for most individuals and institutions.

• Identify the major threats to U.S. economic prosperity in the twenty-first century.

Investing in U.S. Financial History reveals that there is almost no financial event that is unprecedented. By understanding the fundamental drivers underpinning key economic events, you will internalize investment principles, avoid common pitfalls, and resist the temptation to panic amid market volatility.

Genres: History, Finance, Nonfiction, Economics, Business

601 pages, Kindle Edition

Published February 27, 2024

Reviews

[Jack Reidy · Rating 5 out of 5]

I think this is an important book. The full title is "Investing in U.S. Financial History: Understanding the Past to Forecast the Future" by Mark J. Higgins


From my point of view as a small investor, it is useful guide to things which have happened and may be like what can happen to your investments. I believe that the more financial history you know, the better you can prepare for the future.

It covers issues such as the national debt, the Federal Reserve, financial regulations and many other financial issues. I highly recommend this book as it covers important issues and historical events clearly and interestingly.

[T N · Rating 4 out of 5]

Really good insight into the past of the US financial history. I definitely learned a lot, and have to think about how current events combine with history to tell us outcomes. Obviously, a single book can't cover the massive amounts of information that exist in such a long history, but I think it did a tremendous job in summarizing it and putting the information out there.

[Sofi · Rating 5 out of 5]

Mark J. Higgins’ "Investing in U.S. Financial History: Understanding the Past to Forecast the Future" is a masterful exploration of the intricate patterns and pivotal events that have shaped the American financial landscape. With meticulous research and a keen analytical mind, Higgins takes readers on a journey through the evolution of U.S. finance, offering invaluable insights for both novice and experienced investors.

The book seamlessly connects historical events to modern financial concepts, illustrating how understanding the past can provide crucial context for today's investment decisions. Higgins' ability to distill complex financial history into engaging narratives makes this book accessible and intriguing. His writing is clear and concise, avoiding jargon while maintaining depth and rigor.

What sets this book apart is its practical application of historical lessons to current and future financial trends. Higgins provides a thoughtful analysis of market cycles, economic policies, and key figures in U.S. financial history, offering readers a solid framework to approach their own investment strategies. The insights presented in this book are both informative and actionable, making it a valuable resource for anyone looking to deepen their understanding of financial markets.

Overall, "Investing in U.S. Financial History" is a compelling and enlightening read that equips readers with the knowledge to navigate the complex world of investing. Mark J. Higgins has crafted a book that is as educational as it is engaging, making it a must-have addition to any investor's library.

[Lynn Raebsamen · Rating 5 out of 5]

I was thrilled to meet Mark at CFA Institute LIVE in Chicago, where I first learned about his book "Investing in U.S. Financial History". Reading this book felt like uncovering a hidden map to America’s financial soul. As someone fascinated by market cycles, I was deeply moved by Higgins’ approach, diving into 230 years of booms and busts to explain how history shapes asset management. His novel idea of going far beyond typical backtesting, tracing patterns back to Hamilton’s era, resonates with me. It’s a fresh lens that makes today’s volatility feel less daunting. The research is world-class; you can sense the painstaking detail in every story, from the panic of 1907 to the 2008 crisis. As an index fund advocate, I cheered his historical case for why active investing often falls short. This book is a treasure for anyone who loves finance and history, blending rigorous scholarship with heartfelt lessons. Absolutely inspiring!

[William J. · Rating 4 out of 5]

For such a thick doorstop of a book, it's a breezy read considering the subject matter. I was hoping for a summary and a narrative arc of U.S. financial history that would serve as a starting point for further reading, and this book delivered. I noticed, though, that the closer I got to the present, the details were sparer and the author's opinions a bit more front and center (Cathie Wood, a contender for main villain of the post-COVID bubble pop? I don't know...). You also lose a sense of chronology in the second half of the 20th century and beyond, as the chapters start to center around themes. Still, these are minor complaints. This is an impressive book if you take it for what it is: a wide-reaching, quick-moving summary. I do wish there was a categorized bibliography, though.

[Alex Pellicci · Rating 5 out of 5]

11/10. Comprehensive history of the US Financial system and stock market, emphasizing the recurring investor psychology cycle of optimism and pessimism driving bull and bear markets. Covers Alex Hamilton’s reforms, the crashes of: 1792, 1819, 1837, 1873, 1893, 1907, 1929, Great Inflation, dot-com bubble, and the GFC. Covers the development of Wall Street and explains that the days of outperforming the market through security analysis are gone since the 1934 Securities Exchange Act and the subsequent rise of analysts and institutional investor in the following decades. It would take hours just to summarize, literally anything relevant is in here, amazing book that reinforces the long-term perspective that’s needed to thrive as an investor

[Ian And · Rating 5 out of 5]

Fills a Surprising Gap in the Market

Mark Higgins’s excellent book on this topic was long overdue. Only weird thing is that nobody managed to beat him to the punch of making a book where finance is the key thread of American history — rather than just a series of footnotes.

Mark Twain (supposedly) once said: “History doesn’t repeat itself — but it rhymes.” This book is an excellent resource for financial professionals and laypeople alike. Appreciating past events, and recognizing familiar patterns, enables readers to stay cool (& therefore solvent) in times of boom and bust.

[James · Rating 4 out of 5]

This was a great read. It is a very difficult task to attempt to write the history of our great country's economy in a book and somehow not make it feel like a textbook. Mark was able to do this. The only complaint is that it felt like at times we were jumping to another topic within a current chapter and discussing how we would then read this in a future chapter before jumping back into the current chapter. Overall, this was a great book that I would recommend to all. Investment professionals or not.

[Julia Lipscomb · Rating 3 out of 5]

DNF - After receiving a copy of this book from NetGalley, I soon realized that I am not in the target audience. I wouldn't call this a comprehensive review of US financial history. This is a book for FINRA-registered investment banking analysts or professionals studying the FINRA who are looking for an alternative/complement to the Intelligent Investor by Benjamin Graham. I wasn't going to add to my shelves, but I hope this criticism is useful to the publisher's marketing strategy. And I always appreciate any criticism on the canons.

[Jackson Fuja · Rating 5 out of 5]

I LOVED this book. This book provides the reader with a thorough-comprehensive understand of the financial history of the US, from its founding to present day, and does so in such an engaging way I found it hard to put the book down.

In this book Higgins explains the economy and its history - something most people think is mind numbingly boring - in a thoughtful, lively and FUN way without dumbing it down through his graphic imagery and story-telling.

I would recommend this book as a starter to anyone wishing to learn more about this topic.

[Aysha Suzuki · Rating 5 out of 5]

A must read for anyone interested in finance, looking at the stock markets or looking to start to invest. Understanding how we got here is vital in understanding where we are today. Written by a practitioner rather than an academic, this is the book to understand financial market history. So many friends of mine feel equities are too risky but what they do not take into account is how the US came to be 70% of the global market and the journey they took to get here. Highly recommend!

[G C · Rating 5 out of 5]

This book gave a great overview of U.S financial systems and was especially helpful in outlining how different legislations affected banking within the U.S. It is very factual yet interesting. I enjoyed following the development of various economic ideologies from their inception to use in contemporary economic policy and investment strategies.

[Ibta C · Rating 2 out of 5]

seems like it misses the mark on recognizing certain historical contexts (perhaps my expectation of this being a historical book was not the right expectation to come into this with). it also outlines how modern economists and their principles or concepts can be absurdly wrong and outdone by gamblers in markets when unpredictability hits (at least in early/mid 2025).

[Joseph G · Rating 4 out of 5]

This book has ups and downs in quality.

Not that it's bad, but it just lacks some editing. I've noticed one or two misspellings of names. Some ideas appear too close together as to be repetitive.

Not to say these ruin the book, but it lacks the polish you might expect of a 30 dollar book.

[Amr Gouda · Rating 5 out of 5]

This book is essential for curious minds seeking to unravel the complexities and uncertainties of the financial world. It broadens your perspective, equips you with wisdom to become a more successful investor, and helps you steer clear of current trends and potential financial pitfalls.

[Rex · Rating 4 out of 5]

The author is pretty America-pilled.

[Dominic · Rating 5 out of 5]

Amazing book and a must read for any history or finance/Econ buff. Showcases why things work the way they do in the US financial system, which is important to understanding our current economy and societal pain points. “History Doesn’t Repeat Itself, But it Often Rhymes”