Essay On Presidential Elections

This document is authorized for use only by Yen Ting Chen in FInancial Markets and Institutions taught by Nawal Ahmed Boston University from September 2014 to December 2014.

The premise of an efficient market is that stock prices adjust accordingly as information is received. The speed and accuracy of the pricing changes are a reflection of the strength of the market efficiency, where in theory a perfectly efficient market will re-adjust prices immediately and precisely with new information. The efficient market hypothesis aligns with beliefs about whether technical and fundamental analyses are useful in making investment decisions or whether a passive approach is appropriate. In a perfectly efficient market, these types of analyses are not able to predict stock price trends (based on market inefficiencies or price abnormalities) which could assist in portfolio positioning or investment management. However, some investors belive that the market pricing is not precise and that there are timing windows and pricing trends that can be identified through analysis of past performance and finding price abnormalities where all information is not correctly reflected in the stock price (Hirt, Block and Basu, 2006).

The market is likely to grind higher in the medium term, but an absence of fundamental improvement in corporate earnings quality and investor psychology means the market would remain a tactical trade for the time being.

Abstract The stock market is witnessing heightened activities and is increasingly gaining importance. In the current context of globalization and the subsequent integration of the global markets this paper captures the trends, similarities and patterns in the activities and movements of the Indian Stock Market in comparison to its international counterparts. This study covers New York Stock Exchange (NYSE), Hong Kong Stock exchange (HSE), Tokyo Stock exchange (TSE), Russian Stock exchange (RSE), Korean Stock exchange (KSE) from various sociopolitico-economic backgrounds. Both the Bombay Stock exchange

    Today’s stock market offers as many opportunities for investors to raise money as jeopardies to lose it because market depends on different factors, such as overall observed country’s performance, foreign countries’ performance, and unexpected events. One of the most important stock market indexes is Standard & Poor's 500 (S&P 500) as it comprises the 500 largest American companies across various industries and sectors. Many people put their money into the market to get return on investment. Investors ask themselves questions like how to make money on the stock market and is there a way to predict in some degree how the stock market will behave? There are lots and lots of

America has had it’s moments of glory and triumph yet also it’s moments of failure and loss. However, it seems nearly impossible to predict an economic recession or a war, so one can never know when tough times are approaching. Currently, America is in the second longest period of stock market growth, ever. The natural conclusion, then, is that the economy here is healthy and strong, and that this growth will continue. Unfortunately, however, America’s stock market is in for a correction sooner or later, because the wealth and

2) When the stock markets become volatile across many sectors, it is called a "correction." A correction need not mean losses, in fact, a good investment manager can ride these correction crests to emerge a winner in the market.

“Equities are notoriously volatile investment, both in terms of the market as a whole and individually, and its prices are affected not only by fundamentals, but by external factors and market sentiments” (Conen, 2015).

All financial markets can be erratic. It has experienced significant fluctuations in business cycles, inflation, and interest rates, along with economical recessions throughout the past century. The 1990s experienced a surge of growth due to the bull market pushing the Dow Jones industrial average (DIJA) up 300 percent. This economic growth was accompanied by low interest rates and

Numerous researches have provided the evidence of seasonal anomalies in Stock market, but different types of anomalies were found during the study. Patterns of anomalies varied from one study to another. According to Fama (1965), existing of seasonality in security market has made it difficult for the study of market efficiency and tests involving return models. Rozeff and Kinney (1976) found that seasonality existed in monthly rates of return on New York Stock Exchange (NYSE) during the time period of 1904-1974.

Times have changed and so have all the investment and trading options as well. Online trading activities have taken the entire financial world by storm and it is evident by the sheer number of different online trading platforms and brokerage firms emerging on daily basis. With great many advantages and benefits offered to the investors, it is obvious why; millions of traders and investors are making beelines for this interesting, online format of trading, rather than the traditional ones.

Investors should start investing in derivative market which helps to earn high return as well as for hedging.

As the year trickles to its conclusion, there isn’t too much in the way of political events forthcoming. Very little tends to occur during the final weeks of the year/initial days of the New Year, so quiet trading is often the call of the day. Looking at what political events – of the few around – are worth looking at, it’s all about emerging US data off the back of the recently passed tax bill. The US CB Consumer Confidence data should be telling, as it is expected to reach a new high of 129.5 as the holiday season rolls on. On the flip side, expect US Pending Home Sales to show a slight decrease, as after positives in Q3, a slide is anticipated as the year draws to a close. Finally, in another expected dip – albeit in a positive twist – US Jobless Claims are expected to fall to around 230,000, a fall of approximately 15,000 on the last figures posted. Again, in the coming days, it’s more a case of data

In 1986, Clifford W. Smith Jr., took note of some very important patterns about the stock market’s

The purpose of this study is to investigate the presence of January effect in emerging stock markets of four Southeast Asia countries: Malaysia, Thailand, Philippine and Indonesia, for the period of January 2012 until December 2015, which is the most recent period after the financial crisis in 2007-2008. The financial crisis would affect the behaviour of the stock markets and thus the stock price might not reflect its true value. As the most recent economic crisis is believed to have ended in Fall 2011 (Elliott 2011; Weisenthal 2013), this study will focus on the most recent 4-year period, from January 2012 until December 2015. The four Southeast Asia countries are selected because there are limited studies about them. Furthermore, they are the only Southeast Asia countries being included in MSCI Emerging Markets Index as of 2016. Thus it is worth examining the efficiency of the stock markets of these high growth emerging markets.