Stocks for the Long Run, 4th Edition The Definitive Guide to Financial Market Returns & Long Term Investment Strategies

by Siegel, Jeremy J.

• ISBN13: 9780071494700
• ISBN10: 0071494707
• Edition: 4th
• Format: Hardcover
• Copyright: 2007-11-27
• Publisher: McGraw-Hill

Summary

Stocks for the Long Runset a precedent as the most complete and irrefutable case for stock market investment ever written. Now, this bible for long-term investing continues its tradition with a fourth edition featuring updated, revised, and new material that will keep you competitive in the global market and up-to-date on the latest index instruments.Wharton School professor Jeremy Siegel provides a potent mix of new evidence, research, and analysis supporting his key strategies for amassing a solid portfolio with enhanced returns and reduced risk. In a seamless narrative that incorporates the historical record of the markets with the realities of today's investing environment, the fourth edition features: A new chapter on globalization that documents how the emerging world will soon overtake the developed world and how it impacts the global economy An extended chapter on indexing that includes fundamentally weighted indexes, which have historically offered better returns and lower volatility than their capitalization-weighted counterparts Insightful analysis on what moves the market and how little we know about the sources of big market changes A sobering look at behavioral finance and the psychological factors that can lead investors to make irrational investment decisionsA major highlight of this new edition ofStocks for the Long Runis the chapter on global investing. With the U.S. stock market currently holding less than half of the world's equity capitalization, it's important for investors to diversify abroad. This updated edition shows you how to create an "efficient portfolio" that best balances asset allocation in domestic and foreign markets and provides thorough coverage on sector allocation across the globe.Stocks for the Long Runis essential reading for every investor and advisor who wants to fully understand the market-including its behavior, past trends, and future influences-in order to develop a prosperous long-term portfolio that is both safe and secure.

Author Biography

Jeremy J. Siegel is the Russell E. Palmer Professor of Finance at The Wharton School of the University of Pennsylvania, the academic director of the Securities Industry Institute, and a senior investment strategy advisor to WisdomTree Investments, which creates and markets exchange-traded funds.

Table of Contents

The Verdict of History
Stock and Bond Returns Since 1802	p. 3
Risk, Return, and Portfolio Allocation: Why Stocks Are Less Risky Than Bonds in the Long Run	p. 23
Stock Indexes: Proxies for the Market	p. 37
The S&P 500 Index: A Half Century of U.S. Corporate History	p. 51
The Impact of Taxes on Stock and Bond Returns: Stocks Have the Edge	p. 65
The Investment View of Stocks: How Fickle Markets Overwhelm Historical Facts	p. 77
Valuation, Style Investing, and Global Markets
Stocks: Sources and Measures of Market Value	p. 95
The Impact of Economic Growth on Market Valuation and the Coming Age Wave	p. 123
Outperforming the Market: The Importance of Size, Dividend Yields, and Price-to-Earnings Ratios	p. 139
Global Investing and the Rise of China, India, and the Emerging Markets	p. 161
How the Economic Environment Impacts Stocks
Gold, Monetary Policy, and Inflation	p. 187
Stocks and the Business Cycle	p. 207
When World Events Impact Financial Markets	p. 221
Stocks, Bonds, and the Flow of Economic Data	p. 237
Stock Fluctuations in the Short Run
The Rise of Exchange-Traded Funds, Stock Index Futures, and Options	p. 251
Market Volatility	p. 269
Technical Analysis and Investing with the Trend	p. 289
Calendar Anomalies	p. 305
Behavioral Finance and the Psychology of Investing	p. 319
Building Wealth Through Stocks
Fund Performance, Indexing, and Beating the Market	p. 341
Structuring a Portfolio for Long-Term Growth	p. 359
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