Every day sees a new IPO for the latest dot.com company. P/E ratios on technology and Internet stocks are through the roof: AOL at 149 and Yahoo at an unbelievable and unreasonable 1652. Are these extreme valuations out of line or simply part of a repeating pattern? The last two decades of the 20th century have seen the greatest bull market ever and the longest economic expansion in history. Does the economy drive the market or does the market drive the economy? "The Evolution of Financial Markets" takes a close and detailed look at the forces behind the economy and the market, using the past as prologue to the present. The author examines the technological and economic forces that have moved the stock market in the past as well as today. The invention of the light bulb, the introduction of radio and television, and the advent of the personal computer are just some of the developments that have shaped the world and thus the markets. The author shows that over the past 200 years, the patterns in the global markets - and the periods of extreme valuation - have paralleled these technological and financial advances.
The author identifies the cycles formed by events in technology and economics and shows investors how to value current technologies and the stock market by analyzing similar past developments in the market. The book explains that what is happening in today's global markets is simply a repetition of a sequence of events played out consistently over the past 200 years. "The Evolution of Financial Markets" re-creates the investing atmosphere of previous technological and industrial developments and presents the aftermath - both successful and unsuccessful. By examining these past examples, investors can evaluate current events and learn how those economic factors affect today's market to make better investment decisions. Emotion and sentiment often combine to drive security prices far above or below fundamental valuations. This book examines periods of extreme valuation and provides perspective, such as: an invention's importance in the economy; an analysis of the returns on the relevant listed securities and market indices; and specific parallels between past market patterns and current market cycles.
"The Evolution of Financial Markets" provides perspective on what drives the stock market, giving investors a credible way to analyze today's market performance for long-term investing.
- ISBN10 0071370552
- ISBN13 9780071370554
- Publish Date 1 July 2001
- Publish Status Cancelled
- Out of Print 16 September 2004
- Publish Country GB
- Publisher McGraw-Hill Education - Europe
- Imprint McGraw-Hill Publishing Co.
- Format Hardcover
- Pages 325
- Language English