Stocks for the Long Run : the Definitive Guide to Financial Market Returns and Long-term Investment Strategies
The Bankruptcy of Government andPrivate Pension Systems Although it is widely known that our Social Security and Medicare pro- g ...
But that will not be possible. Because of our aging population, it is most likely that future increases in the age of retirement ...
Mideast, outside of oil, have not been growing rapidly. If the entire de- veloping world increases its growth to 6 or even 8 per ...
willing to provide capital to those who wish to innovate. Equally impor- tant is that many U.S. brand names have great appeal wo ...
9 CHAPTER OUTPERFORMING THE MARKET The Importance of Size, Dividend Yields, and Price-to-Earnings Ratios Security analysis canno ...
Yet finance theory has shown that if capital markets are “efficient” in the sense that known valuation criteria are already fact ...
Fama and French’s findings have prompted financial economists to classify the stock universe along two dimensions: size, measure ...
have persisted over time and are difficult to explain in an efficient mar- ket model. Trends in Small-Cap Stock Returns Although ...
1983 is eliminated, the total accumulation in large stocks over the entire period from 1926 through 2006 is virtually the same. ...
stocks, boosting their holdings of these issues. The 2000 to 2006 small stock surge followed the collapse of large-cap tech stoc ...
Although value stocks might sound unattractive, these stocks should not be shunned by investors. First, investors’ expectations ...
ber 1957, she would have accumulated $176,134 by the end of 2006, for an annual return of 11.13 percent. An identical investment ...
Other Dividend Yield Strategies There are other high-dividend-yield strategies that have outperformed the market. A well-known o ...
Indeed, both of these strategies have excelled, as Figure 9-3 shows.^14 The Dow 10 strategy returned 14.08 percent per year over ...
when growth stocks catch the eye of speculative investors, that these value-based strategies will underperform capitalization-we ...
Again, these results would not have surprised the value investors Graham and Dodd, who, in their classic 1934 text Security Anal ...
CHAPTER 9 Outperforming the Market 151 FIGURE 9–4 P-E Ratios for the S&P 500 Index Companies, 1957 through December 2006 TAB ...
that price-to-book ratios might be even more important than price-to- earnings ratios in predicting future cross-sectional stock ...
comes much smaller. The largest value stocks returned 13.17 percent per year while the largest growth stocks returned about 9.87 ...
This means that the historical return to small value stocks is nearly 10 percentage points above the “efficient market” predicti ...
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