See also credit; federal deficit; interest rates
debt/equity ratios, 52–53, 85, 410n.14
deficit. See federal deficit deflation, 260, 330, 374, 383
Dell, Michael, 278
Dell Computer, 106, 121, 290
call options, 278–79, 425n.28
Meeker’s touting of, 98
as “must–have” stock, 302
put options, 279, 281
share buybacks, 278–79
stock performance, 23, 26, 27, 278, 279, 287, 301, 338, 404n.21
value investor and, 213
Delta Airlines, 334
“democracy bubble,” 415n.35
democratization, 19, 20–21, 30, 175–92, 299
Democrats, 19, 128, 131
Den of Thieves (Stewart), 76
derivatives, 279, 281
Deutsche Bank (N.Y.), 57
Deutsche Morgan Grenfell, 99, 100–101, 251
Dickens, Charles, 32
Dickson, Joel, 264
Digital Equipment, 41, 302
discount brokers, 182, 257
discount rate, 92
disinflation, 93, 260
Disney Company, 125, 145, 428n.42
Di Tomasso, John, 372–74
Di Tomasso Group, 372
Diversified Retailing, 38
dividends, 59, 133, 376, 378–81
average yield, 360
compounding, 381
1970s compared with Great Bull Market, 407n.23
projected yields, 364
reinvested, 5, 6, 54, 367
share buyback effects on, 133, 277, 425–26n.29
stock options effects on, 133
TIPS and, 383, 469n.62
Doerflinger, Thomas, 74
dollar, 375, 376
continuing decline in, 394, 395, 396
Donald, James, 428n.42
Donaldson, Lufkin & Jenrette, 96, 228, 231, 346
dot-coms. See Internet stocks
Douglas, Susan, 458n.12
Dow, Charles, 4, 6, 35, 362
Dow Jones Industrial Average, 7, 16, 36–38, 40, 41, 43, 45, 47, 48, 49, 54, 62, 64, 65, 66, 72, 85, 86, 121, 153, 244–45, 305, 336
Dow Jones Industrial Average
in 1998, 10, 11, 262, 401n.20
in 1999, 300–301
in 2000, xx, 315, 326
in 2001, 327
in 2003, 366, 387
Asian crisis effect on, 260
average stock trading (1999), 301
bear market rallies and, 366, 387, 391
crash of 1973–74 and, 3, 16, 39, 40, 41, 390, 391
1000-point advances, 121
top six stocks’ performance (1995–98), 26–27
volatility and, 260, 366
Dow Jones News Services, 61, 179–80
Dow Jones Transportation Average, 315
downsizing and layoffs, 47, 48–49, 58–59, 63, 86, 339, 376
by Dunlap, 179, 180
from productivity bubble, 261–62
rate in 1990s, 19, 87
as stock investment impetus, 116
by Wall Street firms, 82, 341, 342
Dow Theory, 4–7, 370, 400n.7, 467n.36
Dow 36,000 (Glassman and Hassett), 20, 120
Dresdner Kleinwort Wasserstein, 425n.29
Drexel Burnham Lambert, 52, 57–58, 75, 76, 84, 319, 355
Giuliani indictment of, 351
DSC Communications, 428n.42
Dudack, Gail, 4–5, 6, 15, 228–31, 260–63, 275, 341, 371, 374, 381, 383, 446n.18
on emerging markets, 377
on “stealth” bear market, 304–14, 315, 325, 370
2004 market and, 388, 391, 396
Dunlap, Albert, 145, 157, 179–81, 429n.42
Eamer, Richard K., 126
earnings, 183, 243, 269–87, 363
cycle theory and, 7
dividends and, 378–80
excess capacity and, 258, 260
GDP growth and, 214
lowness of, 328–29
misrepresentation, 26, 56, 110, 144–47, 202, 207, 208, 270–80, 306, 318, 319, 389–90
momentum fund managers and, 206, 212, 302
one-time expenses and, 273–74, 479
operating income and, 257–58, 273–75
P/E ratio and. See price/earnings ratio
profit relationship with “reported,” 145, 271–75, 280
projected for 2004, 389
raised estimates of, 62, 206–7
shareholder suits on misleading, 146–47
stock option effects on, 110, 125, 127, 131, 132, 137, 144–45, 276–79, 389
stock prices over estimates of, 165, 182, 206
stock valuation relationship, 13, 41, 406n.18
Time Warner’s vs. AOL’s, 306
See also quarterly earnings reports
Ebbers, Bernie, 320, 344
economy
bubble burst effects, 249, 378
Bush (G. H.) administration, 391–96
Clinton administration, 19, 87–88
conditions in 1982, 47
corporate restructuring effects, 63
crash of 1987’s non-effect, 72
cycles in. See market cycles
debt-based, 392–96
early 1990s improvement, 86
enormous problems facing, 396
first Bush administration, 93–96
GDP and, 85, 192, 214
Greenspan approach, 93, 95, 251, 327–30, 362, 392–93
IPO effects on, 24–25
productivity parable, 261–62
stock market as reflection of, 214, 248
See also New Economy
efficient market theory, 68–69, 92, 190, 271–72, 282, 345
Einhorn, Steven, 83, 84, 85, 95, 298, 300
Eisen, Harvey, 347, 412–13n.17
Eisner, Michael, 125, 145, 428n.42 “elitist,” as term, 108
Ellison, Lawrence, 145, 428n.42
EMC, 327, 404n.2
emerging markets, 355, 357, 377–78, 381, 396
Employee Benefit Research Institute, 403n.12, 419n.6
Employee Retirement Income Security Act of 1974, 103
energy investment, 226, 354, 355, 357, 374, 396
Enron, 14–15, 90, 343
CNBC coverage of, 157–58, 159, 432–33n.22
Congress and, 123, 146
insider stock sales, 319
investigative reporting and, 169–70, 434–35n.48
Lay’s stock options, 145–46
whistle blower on, 58, 423n.1
ENSERCH, 177
ERISA (1974), 103
Eshoo, Anna, 131
eToys, 319
European Australian and Far East Index, 45
Eveillard, Jean-Marie, 212–16, 217, 219, 232, 315, 375
bubble prediction, 389
excess capacity, 258–62, 322, 329, 361–62
Executive Compensation Report, 130, 141
extraordinary items reporting, 273–75, 479
Extraordinary Popular Delusions & the Madness of Crowds (MacKay), 32, 418
Exxon, 277, 327
Faber, David, 155, 156, 158, 159, 160, 432–33n.22
Faber, Marc, 182, 315–16, 342, 354–55, 357, 366, 371–77, 383
alternative investments and, 396
Faig, John D., 398n.5
FASB. See Financial Accounting Standards Board
Fast Company (magazine), 156, 161
FDIC, 75, 89, 93–94
Fed, The (Mayer), 252, 286
federal budget projection, 328
federal deficit, 63, 86, 87, 123, 328, 330
Bush administration, 394, 395, 396
Federal Deposit Insurance Corporation, 75, 89, 93–94
federal funds rate, 85, 86, 94, 115, 328, 330
federal pension insurance, 102, 103, 111
Federal Reserve Bank of New York, 285–87
Federal Rese
rve System, 84, 86, 251, 330, 362
crash of 1987 and, 92
economic recovery strategy, 392, 393, 395
limited powers of, 252
LTCM bailout, 285–87
market mania and, 262, 263
productivity reports and, 256
stock option survey, 276
Volcker and, 91–92, 408n.30
See also Greenspan, Alan; interest rates
federal surplus, 394
Federal Trade Commission, 198
Feinberg, Jeff, 231
Feldstein, Martin, 362
Fenne, Michael, 288
Fidelity, xx, 320
crash of 1987 redemptions, 66, 72–73
401(k) management service, 340, 448n.40
interest rate cuts and, 95
power and importance of, 447–48n.40
profile of new account openers, 114
Vinik charges and, 229, 230
See also Lynch, Peter; Magellan Fund
Financial Accounting Standards Board, 124, 127, 130–44, 243, 343
financial bubble. See bubble financial cycles. See market cycles financial journalism. See media
Financial News Network, 155, 414n.24
financial research. See research
Financial Research Corp., 223
financial scandals. See fraud and corruption Fireman, Paul, 145, 428n.42
First Eagle Gold fund, 376
First Eagle SoGen Global, 216
First USA, 429n.42
Fishman, Charles, 156, 431n.13
fixed-income investments, 59
move to mutual funds from, 224
pension funds and, 105–6, 109, 110, 111, 422n.44
TIPS as, 374, 383–84, 422n.44, 469n.62
fixed-rate loans, 393
Fleckenstein, Bill, 111, 162, 165
Floyd, Jim, 378
FNN, 155, 414n.24
Fontanelli, Elizabeth, 179–80
Fooled by Randomness (Taleb), 188, 284, 368
Forbes, 43, 137, 170, 229, 244, 288, 297, 408n.25
Forbes, Malcolm, Jr. (“Steve”), 108–9
Forbes Four Hundred, 54
Ford, Gerald, 88, 91
Ford Foundation, 241
Ford Motors, 43, 46, 277, 340
foreign currencies, 395, 396
foreign investments, 45, 51, 355, 381, 394, 396
Fortune, 119, 120, 124–25, 159, 170, 180, 190, 278, 342, 448n.40
CEO compensation survey, 124–25, 126, 140
401(k) plans, 102–13, 118, 119
company stock and, 422n.44
Fidelity and, 340, 448n.40
401(k) plans (continued)
Global Crossing and, 320
high-growth funds and, 225
investment in GICs, 59
investor’s management of, 18, 23, 103, 184–85, 211, 235, 335–36, 340
lack of insurance for, 111
low interest rates and, 211
mutual fund hold-ons and, 15
rethinking of, 340–41
stock/bond ratios in, 422n.44
stock losses and, 28, 109, 324, 334, 336–37, 340
TIPS purchase for, 469n.62
traditional pension plans vs., 102–3, 109–11
2003–04 market confidence and, 388, 391
Frank, Thomas, 108, 190, 415n.35
Franklin Group, 439n.32
Franklin Resources, 223
fraud and corruption, 86, 116, 263, 288, 311, 342, 348, 351
accounting reform skeptics and, 390
Bush corporate responsibility speech, 343–44
corporate culture and, 270–75
1980s excess, 75–77
Friedman, Stephen, 82
Friedman, Thomas, 20
Friess, Foster, 232–33
Frist, Thomas F., Jr., 125
fund managers, 217–35
analysts and, xviii–xix, xx, 11, 183, 206, 207, 295
caution in 1982, 50
crash of 1987 and, 63, 65–66
as financial pundits, 165–67
full investment as pressure on, 225–30, 475
growth orientation, 204–12, 302
Internet stocks and, 295–96
investors’ personal decisions vs., 29–32, 288–89
IPOs and, 24
long-term performance reports and, 186
losses (2000–03), 341
momentum vs. value stocks and, 203–16, 219, 295
1960s youthfulness of, 36–37
personal investments, 224–25
portfolio turnovers, 294
ranking of fund and, 220–21
repeatable results, 187–89
research capabilities, 185
results orientation, 225–26, 295–96
risk balancing by, 188, 225–35, 250, 296
short-term success focus, 164
as stewards, 219
stock picks, 23–24, 41, 196, 218–19, 224, 232, 295, 301–3
view of 2004 market, 390
futures market, 247, 248, 374
Galbraith, John Kenneth, xxii, 12, 62–63, 72, 307, 344–45, 413n.18
Galbraith, Steven, 397–98n.3
Galvin, Tom, 96
gambling, 17–21, 30–32, 65, 112, 115, 129, 249, 339, 359
American predilection for, 210–11
option trading’s unlikely event basis, 283
probability and, 285
Social Security stock investment as, 263–65
See also risk
Gap, The, 26, 27, 289
Garfinkel, James, 28
Garment, Leonard, 89
Garzarelli, Elaine, 240, 242, 413n.18
Gates, Bill, 137, 278
Gateway, 178, 305
GDP, 85, 192, 214, 360, 462n.36
Gemini Fund, 439n.32
Genentech, 50
General Electric, 107, 133, 328, 335, 336
CNBC ownership by, 67, 155, 413–14n.24
“managed” earnings and, 207, 272, 442n.10
nonexercised stock options, 145, 277, 429n.42
stock performance, 26, 41, 46, 301, 315, 327, 387
ubiquity in mutual funds, 302
General Motors, 24, 46, 334, 425n.24
General RE Corp., 137
Gerstner, Lou, 180
Gibbs, Karen, 387
GICs, 59, 422n.44
Gilford Securities, 56, 57