Jeremy Siegel at YAHOO!
Books

Stocks for the Long Run, Fifth Edition
Stocks for the Longrun

The fifth edition of Stocks for the Long Run is more thoroughly rewritten than any of the previous editions. Because of the severe impact of the 2008-09 financial crisis, I felt that what transpired over the last several years had to be addressed front and center. As a result I added two chapters that described the causes and consequences of the financial meltdown. Chapter 1 now previews the major conclusions of my research on stocks and bonds, traces how investors, money managers, and academics regarded stocks over the past century, and describes the events that led up to the financial crisis.

Chapter 2 describes the financial crisis, laying blame where blame is due on the CEOs of the giant investment banks, the regulators, and Congress. Chapter 3 analyzes the extraordinary impact of the financial crisis on the financial markets: the unprecedented surge of the “libor spread” that measured cost of capital to the banks, the collapse of stock prices that wiped out two-thirds of their value, and changed the correlation coefficient between asset classes.

Chapter 4 addresses longer-run issues impacting our economic well-being. This chapter updates and extends the results of earlier editions by using new data provided by the UN Population Commission and productivity forecasts provided by the World Bank and the IMF. I now calculate the distribution of world output of the major countries and regions of the world to the end of the 21st century and analyze the role that the emerging market may play in mitigating our entitlement crisis.

Not only have all the charts and tables been updated through 2012, but the chapter on the valuation of equities has been expanded to analyze such important new forecasting models such as the Shiller CAPE ratio and the significance of profit margins as a determinant of future equity returns.

The chapter on stock volatility analyzes the “Flash Crash” of May 2010 and another chapter addresses whether the well-known calendar anomalies, such as the “January Effect, the “Small stock Effect” and the “September Effect,” have survived over the last two decades since they were described in the first edition of this book published in 1994.

I also include for the first time a description and “liquidity investing,” and explain how it might supplement the “size” and “value” effects that have been found by researchers to be important determinants of individual stocks’ return. In short, the fifth edition integrates all the significant events of the last decade into the long history of US and world equity markets.




Congratulations! Future for Investors has been recognized for being one of the top 10 business books of 2005 in Barrons, Financial Times, and Businees Week.

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The Future for InvestorsFuture for Investors
The new paradigm for investing and building wealth in the 21st century.
The Future for Investors reveals new strategies that take advantage of the dramatic changes and opportunities that will appear in world markets.

Jeremy Siegel, one of the world's top investing experts, has taken a long, hard, and in depth look at the market and the stocks that investors should acquire to build long-term wealth.

His surprising finding is that the new technologies, expanding industries, and fast-growing countries that stockholders relentlessly seek in the market often leads to poor returns. In fact, growth itself can be an investment trap, luring investors into overpriced stocks and overly competitive industries.

The Future for Investors shatters conventional wisdom and provides a framework for picking stocks that will be long-term winners. While technological innovation spurs economic growth, it has not been kind to investors. Instead, companies that have marketed "tried and true" products for decades in slow-growth or even declining industries have superior returns to firms that develop "the bold and the new." Industry sectors many regard as dinosaurs - railroads and oil companies, for example - have actually beat the market.

Professor Siegel presents these strategies within the context of the coming shift in global economic power and the demographic age wave that will sweep the United States, Europe and Japan. Contrary to the popular belief that these economic and demographic trends doom investors to poor returns, Professor Siegel explains the True New Economy and how to take advantage of the coming surge in invention, discovery and economic growth.

The faster the world changes, the more important it is for investors to heed the lessons of the past and find the tried and true companies that can help you beat the market and prosper in the years ahead.