1908

Stocks rebounded from the Panic of 1907, dodging the dual threats of a European war and election of third-time presidential nominee William Jennings Bryan

1915

World War I turned from a depressant to a stimulant as Secretary of State William Jennings Bryan's resignation ended America's financial neutrality

1927

Margin lending mushroomed in response to an easy money policy promoted by New York Federal Reserve chief Benjamin Strong. Traditional stock valuation methods gave way to the optimism of Calvin Coolidge's New Era.

1928

Benjamin Strong finally tried to slow the growth of credit, but nonbank margin lenders kept the rally alive. Coolidge brushed off Secretary of Commerce Herbert Hoover's urgings to curb speculation.

1933

Franklin Roosevelt's inflationary measures provided the economic stimulus required to boost stocks from the low point of the Great Depression.

1935

The market surged on the strength of restored confidence in the banking system, abundant credit, and an economic rebound led by the automotive sector.

1954

A slowing economy induced the Treasury and Federal Reserve to shift their focus from containing inflation to averting a depression. Stock averages soared to levels not observed since the 1929 Crash.

1958

Corporate earnings remained sluggish following the Sputnik shock, but institutional investors smelled economic stimulus in heavy federal spending and the Federal Reserve's moderate posture.

1975

Stocks rallied from a post-1929 low in price-earnings ratios when a wave of bank failures induced the Federal Reserve to loosen credit.

1995

Federal Reserve chairman Alan Greenspan's abrupt tightening of monetary policy in 1994 depressed prices, setting the stage for a rebound rally. Share prices soared when credit conditions eased, helped by Japan's drastic cut in interest rates.

EPILOGUE

What Causes the Very Good Years?

Selected Readings

Index