Professor Milton Friedman
University of Chicago, Nobel Prize in Economic Science, 1976
"Wall Street, prepare yourself. Ben and Phil hit the nail on the head with their insightful guide to investing. No gimmicks, no games, just tapping the true power of economics to make sensible investment decisions. Add to that the authors’ dry wit, and this handbook is a must–read for investors small and large."
Diane C. Swonk
Director of Economics, Chief Economist, Senior Vice President, Bank One Corporation
"The logic and reasoning are persuasive. Stein and DeMuth buttress them with evidence, lots of it. The term ‘valuable’ properly applies to the guidance of the conclusions."
C. Lowell Harriss
Professor Emeritus of Economics, Columbia University
"How refreshing to read commonsense advice about the stock market! Stein and DeMuth’s findings are both verifiable and free of quantitative trickery. What’s more, their writing is as clear and straightforward as the methods they recommend."
author, It Was a Very Good Year: Extraordinary Moments in Stock Market History
Chapter OneThe Impossibility of Market Timing 1
Chapter TwoThe Power of Price 9
Chapter ThreeThe Price/Earnings Ratio 29
Chapter FourDividend Yields and Market Timing 51
Chapter FiveFundamental Value 69
Chapter SixBonds, Price–to–Cash Flow, Price–to–Sales 87
Chapter SevenCombining Factors for Superior Returns 103
Chapter EightUsing Market Timing 135
Chapter NineLooking Forward: A Note of Caution 165
PHIL DeMUTH is an investment advisor and PhD psychologist who has a longstanding interest in the stock market and has written for the Wall Street Journal and Barron’s, as well as Human Behavior and Psychology Today.