Wall Street: Protecting Wealth in Turbulent Markets
When Valuing Wall Street was published in March 2000, the following statement was set out on the cover of the book.
The U.S. stock market is massively overvalued. As a result, the Dow could easily plummet to 4,000 - or lower - losing more than 50% of its value wiping out nest eggs for millions of investors. So argue Andrew Smithers and Stephen Wright in Valuing Wall Street: Protecting Wealth in Turbulent Markets. Using the q ratio developed by Nobel Laureate James Tobin of Yale University, Smithers & Wright present a convincing argument that shows the Dow plummeting from recent peaks to lows not seen in a decade. Using q, Smithers & Wright show convincingly and conclusively why today's stocks are dangerously overvalued, and what you can do to protect your assets from the dramatic downturn that is a virtual certainty.
Subsequent events have dramatically confirmed the strength and validity of the arguments. Valuing Wall Street enables investors to understand how stock markets can be valued and how to benefit from this knowledge.
A shortened version is available in Mandarin.
About the Authors
Stephen Wright spent several years with the Bank of England, where he headed macroeconomic forecasting and the maintenance and development of the Bank's model of the UK economy. He now teaches and researches at Birkbeck College, University of London. His research on stock markets has attracted widespread attention, both inside and outside academia.
Valuing Wall Street does not preach that stocks are dangerous. Quite the opposite: it reassures you that a long-range investor should be heavily invested in stocks - most of the time. But it also reminds you that, during certain periods of history, stocks can be so overvalued that they are entirely the wrong place to be. And now is just such a period.