Book Title: Wall Street Revalued 
Author: Andrew Smithers
Readability: Difficult, reads like a college finance textbook.
Technicality: Technical, advanced level material.
Provides Practical, How To Knowledge On: Two reliable methods to value stock markets.
Summary: Wall Street Revalued is a follow up to Valuing Wall Street a book written in 2000 by Andrew Smithers and Stephen Wright, which discusses a valid way to value the stock market; something called the q ratio.
In Wall Street Revalued, the author provides a thorough technical analysis which explains why the Efficient Market Hypothesis is not valid, and why the evidence supports a new theory, called the Imperfect Efficient Market Hypothesis, in which markets fluctuate around fair value rather than remaining perfectly tied to it.
The book explains the two valid methods for valuing markets, something called the q ratio, defined as the total price of the market divided by the replacement cost of all its companies, and something called CAPE, which is the Cyclically Adjusted Price To Earnings Ratio, also called P/E 10, which was developed by Yale Professor Robert Shiller.
These two methods can be used to determine if the market is currently fluctuating over fair value, near fair value, or under fair value.
Andrew Smithers provides solid, technical evidence as to why these two market valuation methods work, and why other methods do not. He goes to such lengths to prove that markets can be valued so he can go on to explain why Central Bankers must pay attention to such market valuations and corresponding asset bubbles when they occur.
For a graph of the q ratio and CAPE, visit Smithers Smithers & Co’s website. Understand though, that these are not market timing tools, they are risk management tools. The market can remain over or undervalued for years at a time. The valuation tools can help you make intelligent decisions about whether to increase or decrease equities, but cannot help you time your purchases to get in or out at market highs or lows.
Downside: The book is a fascinating read for anyone into finance theory. The average person will not enjoy, nor understand it.
