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

decline far less than the S&P 500 Index that was bloated by overpriced technology stocks. The market subsequently rallied to ...

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14 CHAPTER STOCKS, BONDS, AND THE FLOW OF ECONOMIC DATA The thing that most affects the stock market is everything. JAMESPALYSTE ...

President Clinton hailed the economic news, claiming, “We have the most solid American economy in a generation; wages for Americ ...

whatactuallyhappens. Whether the news is “good” or “bad” for the economy is of no importance. If the market expects that 200,000 ...

expand production. As a result, both firms and consumers will likely in- crease their demand for credit and push interest rates ...

pected earnings; but if interest rates decline, stock prices could possibly move up because of the decline in the rate at which ...

about 40 percent of the total workforce. It is this survey that most fore- casters use to judge the future course of the economy ...

of ADP’s 500,000 U.S. business clients and approximately 23 million em- ployees. Because ADP processes the paychecks for 1 out o ...

employment, or other indicators are rising or falling, and it forms an index from these data. A reading of 50 means that half th ...

to manufacturers, and about 15 percent of the PPI is energy related. There are no services in the producer price index. At the s ...

sidered quite large for the core rate of inflation and would significantly affect the financial markets. Another inflation indic ...

CENTRAL BANK POLICY Central bank policy is of primary importance to financial markets. Mar- tin Zweig, a noted money manager has ...

effect on stock prices, as higher interest rates battle against stronger cor- porate profits. Higher inflation is bad for both t ...

4 PART STOCK FLUCTUATIONS IN THE SHORT RUN Copyright © 2008, 2002, 1998, 1994 by Jeremy J. Siegel. Click here for terms of use. ...

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15 CHAPTER THE RISE OF EXCHANGE-TRADED FUNDS, STOCK INDEX FUTURES, AND OPTIONS When I was a kid—a runner for Merrill Lynch at 25 ...

existence before 1993 and does not even represent a company. The secu- rity with the highest dollar volume was spiders, the nick ...

them back at a lower price.^3 This proves to be a very convenient way of hedging portfolio gains if an investor fears the market ...

254 PART 4 Stock Fluctuations in the Short Run FIGURE 15–1 When Stock Index Futures Closed Down, April 13, 1992 SOURCE: Bloomber ...