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Valuing Wall Street: Protecting Wealth in Turbulent Markets
Valuing Wall Street Protecting Wealth in Turbulent Markets Author:Andrew Smithers, Stephen Wright The U.S. stock market is massively overvalued. As a result, the Dow could easily plummet to 4,000 - or lower - losing more than 50% of its value wiping out nest eggs for millions of investors. So argue Andrew Smithers and Stephen Wright in Valuing Wall Street: How to Predict and Plan for Market Bubbles. Using the q ratio developed by Nobel Laure... more »ate James Tobin of Yale University, Smithers & Wright present a convincing argument that shows the Dow plummeting from its peak of 9600 to lows not seen in a decade. Tobin's q, the controversial method for valuing stock markets which has successfully called every major market top this century, is the ratio of market value to replacement cost of assets and liabilities. Using q, Smithers & Wright show the risks associated with Wall Street, how to predict a burst in the bubble before it's too late, and what to do when the market plunges.« less