The Liquidity Theory of Asset Prices

<p>Foreword by Russell Napier xiii</p>
<p>Acknowledgements xvii</p>
<p>About the Authors xix</p>
<p>List of Tables, Figures and Charts xxiii</p>
<p>Introduction 1</p>
<p>Appetiser 1</p>
<p>Structure of the book 2</p>
<p>Language and jargon 2</p>
<p>Academic theories 3</p>
<p>Modern Portfolio Theory 3</p>
<p>The Efficient Markets Hypothesis 4</p>
<p>Forms of investment analysis 4</p>
<p>Fundamental analysis 4</p>
<p>Monetary analysis 5</p>
<p>Technical analysis 5</p>
<p>The intuitive approach 6</p>
<p>What the book is going to say 6</p>
<p>PART I THE LIQUIDITY THEORY 9</p>
<p>1 Types of Trades in Securities 11</p>
<p>2 Persistent Liquidity Trades 15</p>
<p>3 Extrapolative Expectations 21</p>
<p>4 Discounting Liquidity Transactions 25</p>
<p>5 Cyclical Changes Associated with Business Cycles 37</p>
<p>6 Shifts in the Savings Demand for Money 43</p>
<p>PART II FINANCIAL BUBBLES AND DEBT DEFLATION 49</p>
<p>7 Financial Bubbles 51</p>
<p>8 Debt Deflation 55</p>
<p>PART III ELABORATION 59</p>
<p>9 Creation of Printing–press Money 61</p>
<p>10 Control of Fountain–pen Money and the Counterparts of Broad Money 65</p>
<p>11 Modern Portfolio Theory and the Nature of Risk 71</p>
<p>12 Technical Analysis and Crowds 81</p>
<p>13 The Intuitive Approach to Asset Prices 87</p>
<p>14 Forms of Analysis 93</p>
<p>PART IV EVIDENCE AND PRACTICAL EXAMPLES 101</p>
<p>15 The UK Markets Prior to 1972 103</p>
<p>16 The US Equity Market 1960 2002 109</p>
<p>17 Two Forecasts 113</p>
<p>18 Debt Deflation, Practical Experience 119</p>
<p>PART V MONITORING DATA 121</p>
<p>19 Monitoring Current Data for the Monetary Aggregates 123</p>
<p>20 Monitoring Data for the Supply of Money 139</p>
<p>21 The Different Sectors of the Economy 145</p>
<p>Glossary 149</p>
<p>References 157</p>
<p>Index 159</p>