Title: Shares as a long - term investment. A complete overview of financial market returns and long-term investment strategies
By Jeremy J. Siegel
Translated from English by Olavi Teppan
Condition: Used book in very good condition
Dimensions 153 x 216
This is the fifth edition of this book, in which the author deals centrally and in the foreground with the events of the last decade. After all, the years 2008–2009 witnessed the deepest economic crisis and stock market crash since the Great Depression of the 1930s. The rise of US stock markets to new record levels by 2013 only confirms the idea behind this book: that stocks are the best long-term investment for those who are learning to tolerate short-term volatility.
Chapter 1 provides an overview of the main findings of the author's stock and bond research and looks at how investors, money managers and academics have viewed equities over the past century.
Chapter 2 describes the financial crisis, blaming those who are to blame: the CEOs of huge investment banks, market regulators and the US Congress. The author describes a series of fatal missteps that prompted Standard & Poor's, the world's largest rating agency, to give its coveted AAA rating to junk loans, stupidly declaring them to be as safe as US government bonds.
Chapter 3 analyzes the extraordinary impact of the financial crisis on financial markets: the unprecedented rise in the LIBOR price range, the collapse of stock prices that erased two-thirds of their value, and the fall in US government bond yields to zero for the first time since the dark days of the 1930s. .
Chapter 4 deals with longer-term issues that affect our economic well-being. During the recession, the US budget deficit widened to $ 1.3 trillion, the highest level of GDP since World War II. The slowdown in productivity growth has raised fears that the rise in living standards will slow significantly or even stop. This raises the question of whether our children are the first generation whose standard of living falls below that of their parents. Although the financial crisis and its consequences are at the heart of this publication, the author has made other significant changes. Not only have not all tables and graphs been updated until 2012, but the share pricing chapter has also been expanded to analyze such significant new forecasting models as the CAPE ratio, as well as the importance of profit margins as a determinant of future earnings per share.
Chapter 19, Market Volatility, analyzes the May 2010 "lightning crash" and documents how the volatility associated with the financial crisis looks compared to the banking crisis of the 1930s.
Chapter 20 shows once again that following a simple technical rule such as a 200-day moving average would have been enough to avoid the worst part of the recent bear market.
This publication also addresses the question of whether well-known calendar anomalies such as the "January effect", the "small stock effect" and the "September effect" have remained in force for the two decades since their first publication. Siegel also describes for the first time a term such as "liquidity investment" and explains how it can replace the factors of "size" and "value" that analysts consider to be important determinants of individual stock returns.
The publication of the book has been supported by LHV and Nasdaq.