NEW YORK--()--The Manual of Ideas, the acclaimed series of research-intensive publications for serious investors, today launched a quarterly service entitled “Equities and Tobin’s Q,” authored by John Mihaljevic, CFA, former research assistant to Economics Nobel Laureate James Tobin. The service gives investment managers and strategists access to a comprehensive Tobin’s Q data set covering the period from 1900 through the Federal Reserve’s most recent quarterly Flow of Funds statistical release.
“James Tobin’s Q is an extremely useful tool for portfolio managers, but it must be estimated and interpreted properly”
In “Equities and Tobin’s Q,” Mr. Mihaljevic updates on a quarterly basis the Q indicator estimation technique he developed with Professor James Tobin in 1996-97 while serving as his assistant at Yale. The inaugural report includes Flow of Funds (Z.1) data released by the Federal Reserve on December 11, discusses implications for equity investors, and puts the Q ratio in historical context, with data going back to 1900.
“James Tobin’s Q is an extremely useful tool for portfolio managers, but it must be estimated and interpreted properly,” stated John Mihaljevic, CFA, managing editor of The Manual of Ideas. “Our new research service gives economists and market participants a reliable and consistent way of tracking Q through time. In addition, our quarterly report interprets the data in the same way James Tobin might have done.” Mr. Mihaljevic, a summa cum laude Economics graduate of Yale University, served as Professor James Tobin’s research assistant from 1996-98.
“Equities and Tobin’s Q” is available at annual rate of $399 at http://www.manualofideas.com/q
About Tobin’s Q
Q, originated by James Tobin, may be conceptualized as a measure of over- or undervaluation of publicly traded assets. If the market value of an asset exceeds the cost of replacing it (Q>1), there is an incentive to recreate the asset and sell it in the market at a premium to cost. As a result, incremental real investment will tend to force high Q ratios back to parity. No straightforward balancing mechanism exists in the case of low Q ratios. This and other peculiarities of Q are discussed in the report referenced above.
About The Manual of Ideas
The Manual of Ideas is a series of differentiated, idea-driven publications for serious investors, published by BeyondProxy LLC. For more information, visit http://www.manualofideas.com