Contents

Acknowledgments

A Reintroduction to the Waltz

Introduction to the Previous Edition

PART 1 STOCK MARKET VISUALIZATIONS

Chart 1 Price/Earnings Ratios: Then and Now

Dow Jones Industrials Price/Earnings Ratio, 1915–1986

Chart 2 In Case You Didn't Get It the First Time

The Stock Market vs. Its P/E Ratio, 1871–1937

Chart 3 Earning a Good Return in the Market

The Long-Term Tie Between Earnings and Stock Prices, 1926–1971

Chart 4 Earnings Yields: Stocks versus Bonds

Earnings Yield on the S&P 500 vs. Yield on High-Grade Corporate Bonds, 1946–1974

Chart 5 Price/Dividend Ratios Provide Long-Term Vision

Price/Dividend Ratios, 1920–1985

Chart 6 Price-to-Book Ratios: Playing It by the Book

The Market's Price-to-Book Ratio, 1921–1986

Chart 7 Price/Cash Flow Ratios: A Hidden Twist

S&P 400 High Annual Price/Cash Flow Ratio, 1945–1986

Chart 8 An Advertisement for Super Stocks and Forbes

Sears, Roebuck & Company's Stock Price, 1926–1955

Chart 9 Mr. and Mrs. Financial—Real Split Personalities

Railroad Stocks and Bonds, 1860–1935

Chart 10 Never a Timer Be: 56 Years of Stocks and Interest Rates

Short-Term Interest Rates vs. the Stock Market, 1919–1978

Chart 11 Value Line Industrial Composite: All the Stats That Are Fit to Print

Value Line Industrial Composite, 1970–1986

Chart 12 Wealth Indexes for Classes of Securities, and the Winner Is . . .

Wealth Indexes of Investments in the U.S. Capital Markets, 1925–1985

Chart 13 Invest Overseas and Diversify?

British Stocks vs. Dow Jones Industrials, ...

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