Index options (Cont.):
selling, 267
Indexation:
capitalization-weighted,
351–352, 352i, 353–355
fundamentally weighted,
capitalization-weighted
indexingversus, 353–355
India:
global market share of, 179i,
180, 180i
growing market share of, 178
Industrial and Commercial
Bank of China (ICBC), 175, 184
Industrial sector:
in GICS, 53
global shares in, 175i, 177
Inflation:
after World War II, 9, 10i
capital gains tax and, 70–72,
71 i
core, 245–246
economic downturns and,
30–31
impact on financial markets,
246
money supply and, 189–190,
191 i
during 1970s, 9
stocks as hedges against,
199, 200i, 201–204
Inflation hedges, 199, 200i,
201–204
long-term, failure of stocks
as, 201–204
Inflation-indexed bonds, 35
Inflation reports, 244–246
Information cascade, 325
Information technology sector:
in GICS, 53
global shares in, 175i, 177
Informed trading, 349–350
Initial public offerings (IPOs),
154–157
Insider holdings, in capitaliza-
tion-weighted indexing, 353
Institute for Supply Management
(ISM), 243
Integrys Energy Group, 48
Intel, 38, 155, 156, 158, 176i
on Nasdaq, 44
Interest costs, inflationary
biases in, failure of stocks as
long-term inflation hedge and,
203–204
Interest rates:
on bonds, 7–9, 9i
failure of stocks as long-term
inflation hedge and,
201–202
Fed actions and, 196, 197i,
198–199
federal funds rate, 196
on government bonds, above
dividend yield on common
stocks, 95–97
during Great Depression, 8
International Accounting
Standards Board (IASB), 105,
174
International incorporations, 174
International stocks, 362
Inventory accounting methods,
failure of stocks as long-term
inflation hedge and, 203
Investing:
bear market and its after-
math and, 89–91
beginning of great bull
market and, 85–86
common stock theory of, 82
early views of, 79–82
postcrash view of returns
and, 83–85
practical aspects of, 360
radical shift in sentiment
and, 82–83
successful, guides to,
360–363
top of bubble and, 88–89
warnings of overspeculation
and, 86–88
Investment advisors, 364
Investment strategy, 363–364
Investor sentiment, 333–334,
335 iIraq, defeat in Gulf War, 85
“It Pays to Be Contrary” (Neill),
333Jagannathan, Ravi, 241n
January effect, 306–311, 307i
causes of, 309–310
weakening of, 310–311
Japan:
global market share of, 179,
179 i, 180i
market bubble in, 165
sector allocation and, 175i,
176, 177
JCPenney, 64
JDS Uniphase, 89
Jegadeesh, Narasimhan, 302
Jensen, Michael, 99n, 345
Jobs and Growth Reconciliation
Act of 2003, 69–70
Johnson, Lyndon B., 193, 226
Johnson & Johnson, 144, 176i, 177
Jones, Robert, 356
Jorion, Phillipe, 12n
Journal of the American Statistical
Association, 81
JPMorgan Chase, 176iKahneman, Daniel, 322–323,
328, 330
Kansas City Board of Trade, 256
Kaufman, Henry, 86, 87n
Keim, Donald, 306, 309n,
316–317
Kennedy, John F., 226
Keta Oil & Gas, in DJIA, 38–39
Keynes, John Maynard, 81, 278,
285, 287, 359q, 364
Knowles, Harvey, 147
Kohlberg Kravis Roberts & Co.
(KKR), 62, 63
Korean War, 233
Kraft Foods, 62
Kroger, 59i
Kump, Cecily, 109nLaclede Gas, in DJIA, 39i, 48
Laclede Group, Inc., 47, 48Index 373