Conquering Stock Market Hype

By Allan Campbell

Reliable guidance for investors who are reluctant to get back into the market Millions of investors burned by the crashes and spikes of today's stock market are staying on the sidelines, and it's... This description may be from another edition of this product.

• Format: Paperback
• Language: English
• ISBN: 007143707X
• ISBN13: 9780071437073
• Release Date: June 2004
• Publisher: McGraw-Hill
• Length: 192 Pages
• Weight: 0.73 lbs.
• Dimensions: 8.9" x 0.6" x 5.9"

Customer Reviews

Making Better Stock Mutual Fund Share Purchases

This book presents a value averaging purchase plan for stock mutual fund shares based on the S & P500 P/E ratio. After presenting background information on P/E ratios, the historical real returns of the S & P500 are presented versus its P/E ratio. The near linear relationship shows that when P/Es are high, ie prices are high, real returns are low. One feature of dollar cost averaging is to buy more shares when prices are low; however, investors can improve upon this by considering the P/E ratio to increase their periodic purchases when P/Es are low and decrease them when it is high. A thorough description of other asset classes and their roles in a portfolio is also provided, including inflation protected instruments.