viii Contents
5 An equitable solution / 61
Who predicted futurology?
/ 61
Stock-pickers of the world unite and take over / 63
Value, growth, neither, both / 67
6 Promises, promises / 71
The naked position
/ 71
The time value of money / 73
Wall Street Blues / 79
Income and safety / 82
7 Very interesting, Mr Bond / 87
The old principle/principal trade-off
/ 87
The name’s Safety / 89
Ratings measure risk – usually / 90
8 Chinese walls come tumbling down / 95
Deals on wheels
/ 96
Front running / 98
EBIT doh! / 102
Behind the Chinese walls / 105
part 3 You can always get what you want
9 The meek shall inherit the mineral rights / 115
Essential ingredients – rice, wheat and oil
/ 116
Why do people buy gold? / 120
Price is where supply shakes hands with demand / 122
10 The numbers game / 125
Yield and time
/ 126
The interest rate and bond price see-saw / 129
11 A lottery ticket is a contract too / 133
Welcome to World Lotto!
/ 133
Bringing home the risky bacon / 136