Smith, Frank P., 83–84
Smith, Steven, 12n, 21n
Smithers, Andrew, 117, 118
Social dynamics, 323–325
Socony Mobil Oil, 55, 56i
Soliman, Mark, 108n
Sony Corporation, 176
Southwest Airlines, 156
Spiders, 252
Spot market, 257
Standard & Poor’s (S&P), 37, 61
core earnings of, 107–108
Standard & Poor’s 500
Depository Receipts (SPDRs),
252
Standard & Poor’s 500 stock
index, 37, 40, 47, 51–64, 342
outperformance of original
S&P 500 firms and, 63–64
reaction to business cycle,
208, 20i
sector allocation and, 175i
sector rotation in, 52–58, 53i,
55 i, 56i
top-performing firms in,
58–63, 59i, 60i
Standard & Poor’s (S&P) Index,
42–43
Standard & Poor’s (S&P) Index
futures, 256
Standard Brands, 60i, 62
Standard Industrial Code (SIC),
52
Standard Oil of California, 55,
56 i
Standard Oil of Indiana, 55, 56i
Standard Oil of New Jersey, 55,
56 i
Statman, Meir, 329n
Stattman, Dennis, 150, 152n
Staunton, Mike, 18, 19n, 20
Steiner, Robert, 253n
Stern, Siegfried, 81
Stewart, James, 273n
Stires, David, 106n
Stock bubbles, 323–325
avoidance by fundamentally
weighted portfolios, 355
Stock index funds, 361–362
Stock index futures, 253, 254i,
255–264
arbitrage and, 257–258
basics of markets for,
255–257
choosing, 262–264, 263i
double and triple witching
and, 260–261
fair market value of, 259
Globex trading and, 258–260
importance of, 267–268
leverage and, 261
margin and, 261
stock market crash of 1987
and, 275–276
using, 261–262
Stock indexes, 37–49
Dow Jones, 38–42
(See alsoDow Jones
Industrial Average [DJIA])
market averages and, 37–38
prediction of future returns
using trend lines and,
41–42
return biases in, 46–47
value-weighted, 42–45
(See alsoCenter for Re-
search in Security Prices
[CRSP] index; Nasdaq
Index; Standard & Poor’s
[S&P] Index)
Stock Market Barometer
(Hamilton), 290
Stock market crash of 1929, 4–5,
6, 269, 270i
Babson’s prediction of, 78
Stock market crash of 1987, 224,
269, 270i, 271–276
causes of, 273–276
futures markets and, 273
trading on NYSE and,
272–273
Stock prices:
economic growth and,
240–241
randomness of, 291–292,
293 i, 294Stocks:
outperformance over bonds,
26–27
returns on (seeReturns)
yields on, bond yields
related to, 95–97
“Stocks, Bonds, Bills, and
Inflation: Year-by-Year
Historical Returns (1926-74)”
(Ibbotson and Sinquefield),
84–85
Stocks for the Long Run(Siegel),
86, 88–89, 305, 363
Stop-loss orders, 275
Story stocks, 158
Strike price, of options, 265
Subrahmanyam, Avandihar,
326 n
Summers, Lawrence H., 224n
Sun Microsystems, 38, 89, 156
Supply-side effects, failure of
stocks as long-term inflation
hedge and, 202
Support level, 294
Surowiecki, James, 324n
Survivorship bias, 18, 343, 343i
Sweets Colgate-Palmolive. of
America, 59i
Swensen, David, 90
Switching returns, 214–215, 215i
Szilagyi, Jan, 158nTaiwan Semiconductor, 177
Tax code, history of, 74–75
Tax-deferred accounts, 73–74
Taxes:
capital gains (seeCapital
gains taxes)
income (seeIncome taxes)
increasingly favorable tax
factors for equities and,
72–73
Technical analysis, 289–304
Dow’s role in, 290–291
momentum investing and,
302–303
moving averages and, 295–302
nature of, 289–290378 Index