The Equity Premium Puzzle - Softcover
The book presents a theory of a necessity to adjust money supply to account for productivity if deflation is to be avoided.
"synopsis" may belong to another edition of this title.
From the Back Cover:
truly fascinating - N. Mosley, UBS Sr. VP
page turner - B.G. Smith, NASA engineer
amazing sense of humor - C. Wolfe, investor/artist
Why do STOCKS return 4 to 8% more than BONDS?
· Do you believe in Efficient Markets? Rational Investors? Then such differences in return rates should not exist.
· Do you believe bonds are much safer than stocks? Individually maybe, but over the long term bonds fluctuate with interest rates and are approximately as risky as index funds, and may default more often, justifying maybe a 1% risk premium at most.
Why is the EQUITY PREMIUM important to you?
Would you like to know if an investment strategy reliably returns more profit? What if all investments returned nearly the same? If home loans and government bonds had to yield high returns like Apple or Google, what then? For 28 years economists have tried to explain the equity premium.
The equity premium is due to intrinsic growth and productivity growth, together with the monetary policy that must inevitably accompany them, and the resulting see-saw between productivity and human value has dogged human progress at least since the dawn of agriculture. The problem and solution to the puzzle are not only explained in fascinating detail, but a new focus on human value growth is proposed that could end the conflict and produce both balance and progress. Meanwhile, learn how to increase your share of the present economy through investing in the equity premium and joining a new class of self-sufficient investors comprising fully 20% of us or more.
From the Book:
"Monetary policy must permanently adapt. Rather than a question of the sustainability of a new monetary policy regime, we find a question of whether it is wise to discontinue an adaptation to productivity increases and associated deflation."
"Constantly reducing one's share of the pie leads to no pie. Liquidation of working assets is in my view the number 1, 2 and 3 problem of the working classes."
About the Author:
page turner - B.G. Smith, NASA engineer
amazing sense of humor - C. Wolfe, investor/artist
Why do STOCKS return 4 to 8% more than BONDS?
· Do you believe in Efficient Markets? Rational Investors? Then such differences in return rates should not exist.
· Do you believe bonds are much safer than stocks? Individually maybe, but over the long term bonds fluctuate with interest rates and are approximately as risky as index funds, and may default more often, justifying maybe a 1% risk premium at most.
Why is the EQUITY PREMIUM important to you?
Would you like to know if an investment strategy reliably returns more profit? What if all investments returned nearly the same? If home loans and government bonds had to yield high returns like Apple or Google, what then? For 28 years economists have tried to explain the equity premium.
The equity premium is due to intrinsic growth and productivity growth, together with the monetary policy that must inevitably accompany them, and the resulting see-saw between productivity and human value has dogged human progress at least since the dawn of agriculture. The problem and solution to the puzzle are not only explained in fascinating detail, but a new focus on human value growth is proposed that could end the conflict and produce both balance and progress. Meanwhile, learn how to increase your share of the present economy through investing in the equity premium and joining a new class of self-sufficient investors comprising fully 20% of us or more.
From the Book:
"Monetary policy must permanently adapt. Rather than a question of the sustainability of a new monetary policy regime, we find a question of whether it is wise to discontinue an adaptation to productivity increases and associated deflation."
"Constantly reducing one's share of the pie leads to no pie. Liquidation of working assets is in my view the number 1, 2 and 3 problem of the working classes."
Robert Shuler combines 50 years investing experience with the knack for finding hidden principles of a successful rocket scientist with half a dozen patents and several dozen publications in fields ranging from economics (corporate risk compensation, the equity premium) to physics (inertia & quantum gravity). He lives in Texas with his wife Natasha.
"About this title" may belong to another edition of this title.
- PublisherTate Publishing
- Publication date2015
- ISBN 10 1681422522
- ISBN 13 9781681422527
- BindingPaperback
- Number of pages324
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