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Title:
Stocks for the long run : the definitive guide to financial market returns & long-term investment strategies / Jeremy J. Siegel.
Author:
Siegel, Jeremy J.
Publication Information:
New York : McGraw-Hill Education, [2014]
Call Number:
HG4661 .S53 2014
Abstract:
"One of the ten best investment books of all time."--The Washington Post. The stock-investing classic--updated to help you win consistently in the chaotic, post-meltdown global economy. Now in its fifth edition, Stocks for the Long Run includes Jeremy Siegel's highly anticipated analysis of the sub-prime crash, the financial crisis, and resulting world-wide recession. This new edition also includes a deeper focus on international investing and emerging markets. "Jeremy Siegel is one of the great ones." --Jim Cramer, CNBC Mad money. "[Jeremy Siegel's] contributions to finance and investing are of such significance as to change the direction of the Profession." --The Financial Analyst Institute. "Jeremy Siegel is the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania."-- Provided by publisher.

"Much has changed since the last edition of Stocks for the Long Run. The financial crisis, the deepest bear market since the Great Depression, and the continued growth of the emerging markets are just some of the contingencies directly affecting every portfolio in the world. This new edition of Stocks for the Long Run answers all the important questions of today: How did the crisis alter the financial markets and the future of stock returns? What are the sources of long-term economic growth? How does the Fed really impact investing decisions? Should you hedge against currency instability? Siegel provides an expert's analysis of the most important factors behind the crisis; the state of current stability/instability of the financial system and where the stock market fits in; and the viability of value investing as a long-term strategy. The economies of [China and India] are more than one-third larger than they were before the 2008 crisis; you'll get the information you need to earn long-term profits in this new environment. Learn all there is to know about the nature, size, and role of diversification in today's global economy; Siegel extends his projections of the global economy until the end of this century. Can stocks still provide 6 to 7 percent per year after inflation? This edition forecasts future stock returns and shows how to determine whether the market is overvalued or not. Essential reading for every investor and advisor who wants to fully understand the forces that move today's markets, Stocks for the Long Run provides the most complete summary available of historical trends that will help you develop a sound and profitable long-term portfolio."--Jacket.
Edition:
Fifth edition.
ISBN:
9780071800518
Physical Description:
xxiii, 422 pages : illustrations ; 25 cm
Contents:
Stock returns : past, present, and future -- The verdict of history -- How the economic environment impacts stocks -- Stock fluctuations in the short run -- Building wealth through stocks.

Part I. Stock returns: past, present, and future : The case for equity: historical facts and media fiction : "Everybody ought to be rich" ; Historical perspectives on stocks as investments ; A radical shift in sentiment ; The postcrash view of stock returns ; The great bull market of 1982-2000 ; Rumblings of the financial crisis -- The great financial crisis of 2008: its origins, impact, and legacy : The week that rocked world markets ; Could the Great Depression happen again? ; The cause of the financial crisis ; The role of the Federal Reserve in mitigating the crisis -- The markets, the economy, and government policy in the wake of the crisis : Avoiding deflation ; Reaction of the financial markets to the financial crisis -- The entitlement crisis: will the age wave drown the stock market? : The realities we face ; The age wave ; Rising life expectancy ; Falling retirement age ; The retirement age must rise ; World demographics and the age wave ; Fundamental questions ; Emerging economies can fill the gap ; Can productivity growth keep pace? -- Part II. The verdict of history : Stock and bond returns since 1802 : Financial market data from 1802 to the present ; Total asset returns ; The long-term performance of bonds ; Gold, the dollar, and inflation ; Total real returns ; Real returns on fixed income assets ; The continuing decline in fixed-income returns ; The equity premium ; Worldwide equity and bond returns ; Appendix : Stocks from 1802 to 1870 -- Risk, return, and portfolio allocation: why stocks are less risky than bonds in the long run : Measuring risk and return ; Risk and holding period ; Standard measures of risk ; Varying correlation between stock and bond returns ; Efficient frontiers -- Stock indexes: proxies for the market : Market averages ; The Dow Jones Averages ; Value-weighted indexes ; Return biases in stock indexes ; Appendix : What happened to the original 12 Dow Industrials? -- The S & P 500 index: more than a half century of U.S. corporate history : Sector rotation in the S & P 500 Index ; Top-performing firms ; How bad news for the firm becomes good news for investors ; Other firms that turned golden ; Outperformance of original S & P 500 firms -- The impact of taxes on stock and bond returns: stocks have the edge : Historical taxes on income and capital gains ; Before- and after-tax rates of return ; The benefits of deferring capital gains taxes ; Inflation and the capital gains tax ; Increasingly favorable tax factors for equities ; Stocks of bonds in tax-defered accounts? ; Appendix : History of the tax code.

Sources of shareholder value: earnings and dividends : Discounted cash flows ; Sources of shareholder value ; Historical data on dividends and earnings growth ; Earnings concepts -- Yardsticks to value the stock market : An evil omen returns ; Historical yardsticks for valuing the market ; Factors that may raise future valuation ratios -- Outperforming the market: the importance of size, dividend yields, and price/earnings ratios : Stocks that outperform the market ; Small- and large-cap stocks ; Valuation: "value" stocks offer higher returns than "growth" stocks ; Dividend yields ; Price/earnings ratios ; Price/book ratios ; Combining size and valuation criteria ; Initial public offerings: the disappointing overall returns on new small-gap growth companies ; The nature of growth and value stocks ; Explanations of size and valuation effects -- Global investing : Foreign investing and economic growth ; Diversification in world markets ; Stock risks -- Part III. How the economic environment impacts stocks : Gold, monetary policy, and inflation : Money and prices ; The gold standard ; The establishment of the Federal Reserve ; The fall of the gold standard ; Postdevaluation monetary policy ; Postgold monetary policy ; The Federal Reserve and money creation ; How the Fed's actions affect interest rates ; Stock prices and central bank policy ; Stocks as hedges against inflation ; Why stocks fail as a short-term inflation hedge -- Stocks and the business cycle : Who calls the business cycle? ; Stock returns around business cycle turning points ; Gains through timing the business cycle ; How hard is it to predict the business cycle? -- When world events impact financial markets : What moves the market? ; Uncertainty and the market ; Democrats and Republicans ; Stocks and war -- Stocks, bonds, and the flow of economic data : Economic data and the market ; Principles of market reaction ; Information content of data releases ; Economic growth and stock prices ; The employment report ; The cycle of announcements ; Inflation reports ; Impact on financial market ; Central bank policy -- Part IV. Stock fluctuations in the short run : Exchange-traded funds, stock index futures, and options : Exchange-traded funds ; Stock index futures ; Basics of the futures markets ; Index arbitrage ; Predicting the New York Open with Globex Trading ; Double and triple witching ; Margin and leverage ; Tax advantages of ETPS and futures ; Where to put your indexed investments: ETFS, futures, or mutual funds? ; Index options ; The importance of indexed products.

Market volatility : The stock market crash of October 1987 ; The causes of the October 1987 crash ; Circuit breakers ; Flash crash, May 6, 2010 ; The nature of market volatility ; Historical trends of stock volatility The volatility index ; The distribution of large daily changes ; The economics of market volatility ; The significance of market volatility -- Technical analysis and investing with the trend : The nature of technical analysis ; Charles Dow, technical analyst ; The randomness of stock prices ; Trending markets and price reversals ; Moving averages ; Momentum investing -- Calendar anomalies : Seasonal anomalies ; The January effect ; Large stock monthly returns ; The September effect ; Other seasonal returns ; Day-of-the-week effects ; What's an investor to do? -- Behavioral finance and the psychology of investing : The technology bubble, 1999 to 2001 ; Behavioral finance -- Part V. Building wealth through stocks : Fund performance, indexing, and beating the market : The performance of equity mutual funds ; Finding skilled money managers ; Reasons for underperformance of managed money ; A little learning is a dangerous thing ; Profiting from informed trading ; How costs affect returns ; The increased popularity of passive investing ; The pitfalls of capitalization-weighted indexing ; Fundamentally weighted versus capitalization-weighted indexation ; The history of fundamentally weighted indexation -- Structuring a portfolio for long-term growth : Practical aspects of investing ; Guides to successful investing ; Implementing the plan and the role of an investment advisor ; Concluding comment.
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