Stocks for the Long Run : the Definitive Guide to Financial Market Returns and Long-term Investment Strategies

money. To this day, the financial markets closely watch the Fed chair- man’s biannual testimony, which takes place in February a ...

a bank maintains at the Federal Reserve to satisfy reserve requirements and facilitate check clearing. If the Federal Reserve wa ...

CHAPTER 11 Gold, Monetary Policy, and Inflation 197 TABLE 11–1 Federal Funds Rates and Subsequent Stock Returns (Number of Chang ...

which displays the return on the S&P 500 Index from the beginning of the month after the fed funds rate has been changed to ...

Fed even begins to take its stabilizing actions. Whatever the reasons, Fed policy actions, at least since 2000, have not evoked ...

200 PART 3 How the Economic Environment Impacts Stocks FIGURE 11–2 Holding-Period Returns and Inflation, 1871 through December 2 ...

the other hand, have not matched the returns on stocks over any holding period. This was the principal conclusion of Edgar L. Sm ...

the rate of inflation. In theory the returns from stocks will keep up with rising prices and stocks will be a complete inflation ...

the U.S. tax code works to the detriment of shareholders during infla- tionary times: corporate profits and capital gains. Earni ...

inventory profits, it leads to a downward biasin reported corporate earn- ings during periods of inflation. Most firms raise som ...

CONCLUSION This chapter documents the role of money supply in the economy and fi- nancial markets. Before World War II, persiste ...

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12 CHAPTER STOCKS AND THE BUSINESS CYCLE The stock market has predicted nine out of the last five recessions! PAULSAMUELSON, 196 ...

The economist’s address is highly optimistic. He predicts that the real gross domestic product of the United States will increas ...

the economy. Instead, the task falls to the National Bureau of Economic Research (the NBER), a private research organization fou ...

a cycle consists of expansion occurring at about the same time in many economic activities, followed by similarly general recess ...

cession a month earlier. Similarly the 2001 recession began in March when technology spending dropped sharply and well before th ...

markets coincided with expanding war economies, there have been 12 episodes since 1802 when the cumulative returns index for sto ...

variability and less predictability than the market trough to economy trough lead time. There are two ways to treat the 2000 to ...

It is important to note that by the time the economy has reached the end of the recession, the stock market has risen 22.4 perce ...