The new era of wealth : how investors can profit from the 5 economic trends shaping the future

Title:

Personal Author:

Wesbury, Brian S.

Publication Information:

New York : McGraw-Hill, 2000

ISBN:

9780071351805

Subject Term:

Portfolio management -- United States

Investments -- United States

Securities -- United States

Wealth -- United States

United States -- Economic conditions -- 1981-

Available:*

Library	Item Barcode	Call Number	Material Type	Item Category 1	Status
Searching... Razak School	30000005036318	HG4529.5 W47 2000	Open Access Book	Book	Searching... Unknown

A chief economist cuts through the clutter, isolating the five key trends investors must understand to build a new era portfolio rich with stocks, bonds, real estate, commodities, and more. 10 illustrations.

Author Notes

Brian S. Wesbury is vice president and chief economist at Griffin, Kubik, Stephens and Thompson in Chicago. The former chief economist for the Joint Economic Committee of Congress, he has ranked as the most accurate interest rate forecaster in both the Bond Buyer and Bloomberg Business News interest rate surveys and was rated in 1998 as one of the nation's top economic forecasters by The Wall Street Journal. Wesbury's work and comments have appeared in The Wall Street Journal, Investor's Business Daily, BusinessWeek, Forbes, and U.S. News and World Report. A frequent guest on CNBC, he is a regular featured speaker for banking and investing organizations across the country.

Introduction	p. 1
The Pessimists Are Wrong	p. 3
The Seeds for the Boom	p. 5
Where Does Wealth Come From? Ask Abe Lincoln	p. 6
Opposing Forces: Accumulation and Redistribution of Wealth	p. 7
The Stock Market Barometer	p. 8
Benefiting from the New Era	p. 10
References	p. 11
Part 1 The Framework for Profiting in the New Era
1 The Technology Revolution	p. 15
The Information Age	p. 19
Machine or Living Ecosystem	p. 26
Limitless Growth	p. 28
The Technology Explosion	p. 30
The Relentless Push to Efficiency	p. 31
References	p. 31
2 Globalization and Economic Efficiency	p. 33
The Dollar Is King in the Global Economy	p. 39
Even the Euro Won't Compete	p. 42
References	p. 43
3 The End of Big Government	p. 45
The Great Society and Malaise	p. 48
References	p. 52
4 Politics in the New World	p. 53
The Impotent Government	p. 53
A Piece of the Rock and the Fourth Branch of Government	p. 59
References	p. 60
5 Monetary Policy: Forecasting the Fed	p. 61
It's a Job, Not a Religion	p. 63
Balancing Act	p. 65
Volcker and Greenspan to the Rescue	p. 65
The Greenspan Era	p. 66
Forecasting the Fed	p. 67
The Supply-Side View Is Correct	p. 69
The Fed, Interest Rates, and Inflation	p. 71
The Fed's Dilemma Will Create Deflation	p. 71
Deflation in the New Era	p. 73
References	p. 74
6 Virtuous Circle: How the Trends Work Together	p. 75
The Evidence	p. 76
The All-Star and Supporting Cast	p. 77
Getting the Best from the Team	p. 79
Keeping the Team Focused	p. 80
Our Money	p. 81
Putting It All Together	p. 83
References	p. 83
Part 2 Preparing Your Portfolio for the Coming Boom
7 Four Threats to the New Era	p. 87
The Great Depression	p. 88
Malaise and Stagnation in the 1970s	p. 91
The Vicious Circle	p. 92
Learning from Japan	p. 92
The Four Threats	p. 93
The Markets as Task Master	p. 94
Storm Clouds	p. 94
References	p. 95
8 Shifting Perceptions	p. 97
The Three Stages of Denial	p. 100
Individuals Know, Policymakers Will Follow	p. 101
Ignoring the Noise--Be Optimistic	p. 102
References	p. 102
9 Strategies for Creating Personal Wealth	p. 105
The Four Tests--New Era Resilience	p. 106
Wealth on the Rise	p. 108
The Risks of Investing in Stocks Will Decline in the New Era	p. 110
Even Low-Yield Bonds Will Provide a Very High
Real Interest Rate	p. 110
Save Your Money and Stay Out of Debt	p. 112
A Dynamic Market Increases Opportunity	p. 113
Investing in the New Era	p. 114
References	p. 114
Part 3 Investment Implications for the New Era of Wealth
10 Picking Stocks for the Future--The Top-Down Approach	p. 119
Risk Versus Reward	p. 120
The Role of Price-to-Earnings Ratios	p. 120
Key Stock Market Principles for the New Millennium	p. 121
Why the New Era Will Boost P/E Ratios	p. 122
P/E Ratios and Inflation	p. 124
Inflation and Taxes	p. 125
P/E Ratios and Interest Rates	p. 126
Taxes and Stocks	p. 128
Find Value in Ideas, Not Resources	p. 129
Does History Suggest Caution?	p. 130
Productivity Boom--New Versus Old	p. 133
The Booming Network	p. 138
Disruptive Technologies and the New Era	p. 140
Look for Misused Resources--Deregulation Creates Opportunities	p. 141
Profit from Leisure Time and Increased Wealth	p. 142
The Bottom Line	p. 143
References	p. 144
11 Picking the Right Stocks and Mutual Funds	p. 147
How Much Should You Invest?--The Rule of 110	p. 147
What Stocks Do I Buy?	p. 148
Value Versus Growth	p. 149
Pure Growth	p. 152
How to Manage Your New Era Investments	p. 153
Day Trading	p. 153
Mutual Funds	p. 153
What Mutual Funds Are Good for the New Era?	p. 154
The 50/50 Strategy	p. 155
Investing in Individual Stocks	p. 156
How to Build a Great Portfolio	p. 156
401K and IRA	p. 159
The Bottom Line	p. 159
References	p. 160
12 Using Bonds for Long-Term Reward	p. 161
Understanding Bond Yields	p. 161
Putting Them All Together and Adding the Fed	p. 165
The Old Wives Tale of the Bond Market	p. 167
The Gains from Lower Rates	p. 168
How to Invest in Bonds	p. 168
Buying Individual Bonds	p. 169
The Problem with Bond Funds	p. 171
Ignore the Myths and the Pessimists	p. 172
The New Era Forecast for Bonds	p. 173
13 Real Estate and Commodities	p. 175
In the New Era, Space and Resources Are Infinite	p. 175
Inflation, Deflation, and Resource Prices	p. 175
Technology and Real Estate	p. 177
Housing, REITS, and the New Era	p. 178
Real Estate Opportunities Still Exist	p. 179
Commodities and Precious Metals	p. 180
Deflation and the New Era	p. 182
References	p. 183
14 The New Era of Wealth Is Just Beginning	p. 185
Vested Interests and New Paradigms	p. 186
Luddites and the New Era	p. 187
A Millionaire on Every Block	p. 188
Ignore the Pessimists	p. 188
References	p. 189
Bibliography	p. 191
Index	p. 193

Available:*

On Order

Summary

Summary

Author Notes

Table of Contents