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About this report:

Disagreement between leading investment managers and strategists has been remarkable. Consider the diametrically opposed views of two prominent figures:

Bill Gross, the outspoken Managing Director of PIMCO, a leading global investment firm with more than $790 billion in assets under management, asserts that the "Q ratio has almost never been lower and certainly not since WWII, implying extreme undervaluation..."

Meanwhile, Russell Napier, Strategist at CLSA, a leading international brokerage and investment group, claims that the Q ratio supports his expectation of a "horrific" market bottom and another 55% drop in the S&P 500 Index by 2014.

Find out in Equities and Tobin's Q, 1900-2010. The report is uniquely equipped to answer this crucial question for equity strategists and portfolio managers:

• Authored by James Tobin disciple. John Mihaljevic is an Economics graduate of Yale who served as Professor Tobin's research assistant from 1996-98. One of Mr. Mihaljevic's key projects while serving in this capacity was to develop and implement a new technique of estimating Tobin's Q.
• Q estimation method used in report was developed in conjunction with James Tobin. Mr. Mihaljevic developed the technique applied in the report in 1996 with the assistance of Professor Tobin, updating the latter's previous method of calculating the Q ratio.
• Historical context reaching back more than 100 years. Equities and Tobin's Q includes data from 1900-2010, enabling the report author to put the current Q ratio in historical context, including the Panic of 1907 and the Great Depression.

Mr. Mihaljevic served as James Tobin's research assistant from 1996-98. In this capacity, Mr. Mihaljevic assisted Professor Tobin in developing a new Q estimation methodology and in periodically updating data related to the Q ratio. Mr. Mihaljevic also assisted Professor Tobin on a variety of macroeconomic research projects at the Cowles Foundation, including researching and editing Money, Credit and Capital, published by McGraw-Hill/Irwin in 1997.

Mr. Mihaljevic is a Chartered Financial Analyst and a summa cum laude graduate of Yale University, having earned distinction in Economics, his major course of study. In addition to working for and studying under James Tobin, Mr. Mihaljevic also studied under Yale Chief Investment Officer David Swensen and Sterling Professor of Economics William Nordhaus.

Mr. Mihaljevic has worked as an investment banker, equity research analyst and investment manager. He currently serves as managing member of Mihaljevic Capital Management LLC and managing editor of The Manual of Ideas.

In Equities and Tobin's Q, 1900-2010, Mr. Mihaljevic updates on a quarterly basis the Q estimation technique he developed with Professor Tobin in 1996-97. Each report includes Flow of Funds data released by the Federal Reserve, discusses implications for equity investors, and puts the Q ratio in historical context. The report includes the following:

• Latest estimate of Tobin's Q, using data released by the Federal Reserve
• Implications for equity investors, based on placing the current Q ratio in historical context and interpreting it as James Tobin might have done
• Charts showing Q going back to 1900, including a comparison of three Q estimation methods: (1) Blanchard, Rhee and Summers, (2) Tobin (old), and (3) Tobin (new) -- Mr. Mihaljevic's calculation, developed jointly with Tobin in mid-1990s
• More than 100 years of Q data (1900-2010), provided in Excel via password-protected download link
• Tobin's Q estimates for 1,000 largest public companies, updated quarterly

• Comprehensive quarterly update report, including data from the Federal Reserve's latest Z.1 statistical release
• Timely commentary on the equity market outlook based on latest Tobin's Q data
• Ongoing enhancements to the quarterly report, including new analysis and resources
• Direct email access to John Mihaljevic should you have any questions about The Manual of Ideas methodology or Q in general
• Timely email alerts whenever Tobin's Q reaches levels that correspond with buy or sell signals for U.S. stocks

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