{"product_id":"wall-street-revalued-isbn-9780470750056","title":"Wall Street Revalued","description":"In 2000 one of the world’s foremost economists, Andrew Smithers, showed that the US stock market was widely over-priced at its peak and correctly advised investors to sell. He also argued that central bankers should adjust their policies not only in light of expected inflation but also if stock prices reach excessive levels. At the time, few economists agreed with him, today it is hard to find those who would disagree.\u003cbr\u003e   \u003cp\u003eIn the past central bankers have denied that markets can be valued and that it did not matter if they fell. These two intellectual mistakes are the fundamentals cause of the current financial market crisis. In addition, a lack of understanding by investors as to how to value the market has also resulted in widespread losses.\u003c\/p\u003e \u003cp\u003eIt is clearly of great importance to everyone that neither these losses nor the current financial chaos should be repeated and thus that the principle of asset valuation should be widely understood.\u003c\/p\u003e \u003cp\u003eIn this timely and thought-provoking sequel to the hugely successful Valuing Wall Street Andrew Smithers puts forward a coherent and testable economic theory in order to influence investors, pension consultants and central bankers policy decisions so that thy may prevent history repeating itself. Backed by theory and substantial evidence Andrew shows that assets can be valued, as financial markets are neither perfectly efficient nor absurd casinos.\u003cbr\u003e \u003c\/p\u003e \u003cp\u003eForeword v\u003c\/p\u003e \u003cp\u003eChapter 1 Introduction 1\u003c\/p\u003e \u003cp\u003eChapter 2 Synopsis 15\u003c\/p\u003e \u003cp\u003eChapter 3 Interest Rate Levels and the Stock Market 25\u003c\/p\u003e \u003cp\u003eChapter 4 Interest Rate Changes and Share Price Changes 37\u003c\/p\u003e \u003cp\u003eChapter 5 Household Savings and the Stock Market 41\u003c\/p\u003e \u003cp\u003eChapter 6 A Moderately rather than a Perfectly Efficient Market 49\u003c\/p\u003e \u003cp\u003eChapter 7 The Efficient Market Hypothesis 57\u003c\/p\u003e \u003cp\u003eChapter 8 Testing the Imperfectly Efficient Market Hypothesis 67\u003c\/p\u003e \u003cp\u003eChapter 9 Other Claims for Valuing Equities 81\u003c\/p\u003e \u003cp\u003eChapter 10 Forecasting Returns without Using Value 91\u003c\/p\u003e \u003cp\u003eChapter 11 Valuing Stock Markets by Hindsight Combined with Subsequent Returns 97\u003c\/p\u003e \u003cp\u003eChapter 12 House Prices 105\u003c\/p\u003e \u003cp\u003eChapter 13 The Price of Liquidity – The Return for Holding Illiquid Assets 109\u003c\/p\u003e \u003cp\u003eChapter 14 The Return on Equities and the Return on Equity Portfolios 115\u003c\/p\u003e \u003cp\u003eChapter 15 The General Undesirability of Leveraging Equity Portfolios 121\u003c\/p\u003e \u003cp\u003eChapter 16 A Rare Exception to the Rule against Leverage 131\u003c\/p\u003e \u003cp\u003eChapter 17 Profits are Overstated 137\u003c\/p\u003e \u003cp\u003eChapter 18 Intangibles 145\u003c\/p\u003e \u003cp\u003eChapter 19 Accounting Issues 159\u003c\/p\u003e \u003cp\u003eChapter 20 The Impact on q 171\u003c\/p\u003e \u003cp\u003eChapter 21 Problems with Valuing the Markets of Developing Economies 175\u003c\/p\u003e \u003cp\u003eChapter 22 Central Banks’ Response to Asset Prices 181\u003c\/p\u003e \u003cp\u003eChapter 23 The Response to Asset Prices from Investors, Fund Managers and Pension Consultants 191\u003c\/p\u003e \u003cp\u003eChapter 24 International Imbalances 195\u003c\/p\u003e \u003cp\u003eChapter 25 Summing Up 197\u003c\/p\u003e \u003cp\u003eAppendix 1 Sources and Obligations 199\u003c\/p\u003e \u003cp\u003eAppendix 2 Glossary of Terms 203\u003c\/p\u003e \u003cp\u003eAppendix 3 Interest Rates, Profits and Share Prices by James Mitchell 209\u003c\/p\u003e \u003cp\u003eAppendix 4 Examples of the Current (Trailing) and Next Year’s (Prospective) PEs Giving Misleading Guides to Value 217\u003c\/p\u003e \u003cp\u003eAppendix 5 Real Returns from Equity Markets Comparing 1899–1954 with 1954–2008 219\u003c\/p\u003e \u003cp\u003eAppendix 6 Errors in Inflation Expectations and the Impact on Bond Returns by Stephen Wright and Andrew Smithers 221\u003c\/p\u003e \u003cp\u003eAppendix 7 An Algebraic Demonstration that Negative Serial Correlation can make the Leverage of an Equity Portfolio Unattractive 233\u003c\/p\u003e \u003cp\u003eAppendix 8 Correlations between International Stock Markets 235\u003c\/p\u003e \u003cp\u003eBibliography 237\u003c\/p\u003e \u003cp\u003eIndex 239\u003c\/p\u003e  \u003cp\u003e\"... excellent book....\" (Fool.co.uk, August 2010) \u003c\/p\u003e\u003cp\u003e\"... an interesting book with many challengers to conventional thought.\" (TheActuary.org.uk, June 2010) \u003c\/p\u003e\u003cp\u003e\"Mr Smithers makes his case convincingly, dismissing alternative indicators of valuation, such as the dividend yield, along the way.\" (\u003cem\u003eThe Economist,\u003c\/em\u003e August 14th 2009) \u003c\/p\u003e\u003cp\u003e\"... an economist with a good record in identifying bubbles... provides evidence.\" (\u003cem\u003eFinancial Times,\u003c\/em\u003e August 5th 2009)   \u003cb\u003eAndrew Smithers\u003c\/b\u003e is the founder of Smithers \u0026amp; Co., which provides economics-based asset allocation advice to over 100 fund management companies worldwide.  Andrew is a regular contributor in Japan to the Nikkei Veritas. He was a regular contributor to the London Evening Standard and Japan's Sentaku magazine, and has written for many other newspapers and magazines, including the \u003ci\u003eFinancial Times\u003c\/i\u003e, \u003ci\u003eForbes\u003c\/i\u003e (US), \u003ci\u003eSunday Telegraph\u003c\/i\u003e (UK), \u003ci\u003eIndependent on Sunday\u003c\/i\u003e (UK) and \u003ci\u003eGenron\u003c\/i\u003e (Japan).  Andrew is an invited contributor to the prestigious Economist's Forum on the FT website.\u003cbr\u003e Andrew is a member of the Advisory Board for the Centre for International Macroeconomics and Finance (CIMF) at Cambridge and has also been a member of the Investment Committee at Clare College, Cambridge since 1998.\u003cbr\u003e Prior to starting his own firm, Andrew was at S.G.Warburg \u0026amp; Co. Ltd. from 1962 to 1989 where he ran the investment management business for some years and which, by the end of his tenure, was the acknowledged market leader. This was subsequently floated off as a separate company, Mercury Asset Management, which was acquired by Merrill Lynch in 1998.  In 2000 one of the world’s foremost economists, Andrew Smithers, showed that the US stock market was widely over-priced at its peak and correctly advised investors to sell. He also argued that central bankers should adjust their policies not only in light of expected inflation but also if stock prices reach excessive levels. At the time, few economists agreed with him, today it is hard to find those who would disagree.  \u003c\/p\u003e\u003cp\u003eIn the past central bankers have denied that markets can be valued and that it did not matter if they fell. These two intellectual mistakes are the fundamentals cause of the current financial market crisis. In addition, a lack of understanding by investors as to how to value the market has also resulted in widespread losses.\u003c\/p\u003e \u003cp\u003eIt is clearly of great importance to everyone that neither these losses nor the current financial chaos should be repeated and thus that the principle of asset valuation should be widely understood.\u003c\/p\u003e \u003cp\u003eIn this timely and thought-provoking sequel to the hugely successful \u003ci\u003eValuing Wall Street\u003c\/i\u003e Andrew Smithers puts forward a coherent and testable economic theory in order to influence investors, pension consultants and central bankers policy decisions so that thy may prevent history repeating itself. Backed by theory and substantial evidence Andrew shows that assets can be valued, as financial markets are neither perfectly efficient nor absurd casinos.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990463594725,"sku":"NP9780470750056","price":30.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470750056.jpg?v=1761787929","url":"https:\/\/k12savings.com\/es\/products\/wall-street-revalued-isbn-9780470750056","provider":"K12savings","version":"1.0","type":"link"}