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

ber of months before (or after) a business cycle trough. Buy-and-hold re- turnsare defined as the returns from holding the marke ...

percentage point) in average annual returns for each week during the four-month period in which investors can predict the busine ...

next recession, which didn’t strike until 1980 while most economists thought it had begun early in 1979. From 1976 to 1995, Robe ...

Following the stock market crash of October 1987, forecasters re- duced their GNP growth estimates of 1988 over 1987 from 2.8 pe ...

less than 20 percent thought the recession had ended in 2001 although the NBER eventually dated November 2001 as the end of the ...

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13 CHAPTER WHEN WORLD EVENTS IMPACT FINANCIAL MARKETS I can predict the motion of heavenly bodies, but not the madness of crowds ...

The news of the plane crash spread quickly, but few imagined what had really happened. Was it a large or small plane? Was it an ...

been open, nearly $300 billion would have been wiped off of U.S. stock values. But then, miraculously, buyers did appear. Despit ...

with specific events are shown in Table 13-1b.^1 Monetary policy is the biggest single driver of these massive market outbreaks ...

buyout, can be questioned since the market was already down substan- tially on very little news before the collapse was announce ...

Even when news has occurred, there can be sharp disagreement overwhatnews caused the market change. On November 15, 1991, when t ...

on the following trading day. The death of Warren Harding in 1923 caused a milder setback, which was soon erased. Sell-offs such ...

crease spending or put pressure on the Fed to stimulate the economy for the upcoming election, would be the best year for stocks ...

CHAPTER 13 When World Events Impact Financial Markets 229 TABLE 13–2 Stock Returns during Presidential Administrations (Measured ...

under Democrats. But this has not been true over the past 60 years, when the market performed far better under the Democrats whe ...

STOCKS AND WAR Since 1885, the U.S. economy has been at war or on the sidelines of a world war about one-fifth of the time. The ...

The market did not reopen until December. Never before had the New York Stock Exchange been closed for such an extended period, ...

The day before the Japanese attacked Pearl Harbor, the Dow was down 25 percent from its 1939 high and still less than one-third ...

skyward and sparking a U.S. military buildup in Saudi Arabia. The rise in oil prices combined with an already slowing U.S. econo ...