The Third Quarter Of 2015

Executive Summary of “Value and Momentum Everywhere”, C. Asness, T. Moskowitz and L.H. Pedersen, The Journal of Finance, 2013

After peaking in the United States in 2006, the global housing bubble collapse. On the national level, home prices in the United States have dropped by almost 40% according to the Case-Schiller home price Index from 2006 peak to mid 2009. Securities with risk exposure to housing market plummeted, causing great damage to financial institutions across the globe. Stock markets all over the world suffered large drops in 2008 and early 2009 as questions arose regarding the solvency of major financial institutions and liquidity in the

The United States was once the leading international economy; this is no longer the case. The U.S. economy is no longer immune or shielded from world macro events. As global economies become more intertwined, our politics are there forth influenced by international macro events. In recent years we have seen macro events such as terrorism lead by ISIS, outbreak of a deadly disease known as Ebola, and Ukraine being invaded by Russia. These international events influence U.S. politics; which in turn influence stock markets.

Three greater substances light up the strange and troubling money related issues for America from the alarming 2008 crash and its outcome. In any case: for U.S. budgetary and regard markets, there has beginning now on an extremely fundamental level been a full recuperation from the Great Recession. Key pointers of execution for these business sections the Dow30, S&P500, Russell 2000, NASDAQ, etc.–are all at higher obvious levels today than they were five years back. Undoubtedly, even in the wake of controlling for swelling, these markers are before where they were in mid-2008. For riches holders in these business parts, the dreadful dream is over-in any event for the present The story for the genuine economy-where unmistakable stock and

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.

For the stock market, 2016 started out poorly. The average investor lost around 6.3% of their portfolio. Some investors did evade the damage to the stock market; but the majority lost quite a bit. Many investors are protecting their money by putting them in government bonds. Companies like GoPro, Twitter, Tesla, and Bank of America are also struggling. At the end of January the stock market showed some life and things are starting to get better. "A late month rally helped avert complete disaster," Bespoke wrote. China is also struggling greatly as the price for oil gets lower and the U.S. dollar gets stronger. The stock market is failing and so might the economy.

Moreover, the stock market crash in 1987 was a shock of stability of the financial system, not only because of the substantial price drop but also, we can clearly see that our functioning systems are significantly flawed and can later be perfected for a better future. Therefore, we learnt more than technical flaws, further improvements of our daily systems have to be made for a better

The turmoil in the international financial markets of advanced economies, that started around mid-2007, has exacerbated substantially since August 2008. The financial market crisis has led to the collapse of major financial institutions and is now beginning to impact the real economy in the

Equity prices capture investors’ perceptions of the future profitability of corporate entities. Periodically, there can be a disconnection between such expectations and what the real economy can truly deliver to facilitate corporate profits growth. Over the long run, the boundaries of corporate performance are firmly imposed by the global economy. In the interim, however, there can be company/sector specific factors that produce profits growth in excess of the aggregate economy. An elevated level of stock market capitalisation to GDP is often an indication that investors have become somewhat too exuberant. In the US, the current level is running at 170%, very close to the all-time high of 183% in March 2000. This would, therefore, suggest that the US market has reached vulnerable territory. Valuation measures are not, however, without their critics and three critiques have been levied against this particular measure. Firstly, the ratio does not supposedly adjust for the impact of technological innovation on operating margins, as well as lower interest expenses. Secondly, the geographic origin of US corporate profits is diverse. Nearly 50% of S&P500 revenues are derived from overseas economies, implying that US GDP is an inappropriate valuation measurement gauge. Finally, the sector composition of the S&P500 is substantially different to the real economy. My thoughts on

The stock price plunge and the severe credit crunch we are watching today in the global financial markets are byproducts of the developments in the US six years ago. In late 2001, fears of global terror attacks after 9/11 shook an already

The year 2010 was noticed as the abnormal bullish trend with all the barometers touched the historical height, consequences has been happened in year 2011 as all the barometers gone to the bearish condition. As a result most of the individual investors who are the middle class earning investors lost their valuable money.

The belief of macroeconomic variables influencing the stock market has been a highly debated discussion for the past decades. There has been no clear conclusion whether or not macroeconomic variables impact the stock market or inversely. The importance of this study have been increasingly critical as not only stock agents find the critical importance but the government to implement macroeconomic policy; the solid finding of this relation will enable policy makers to efficiently and effectively control the economy as well as the capital market. We aim to cover some relationship between macroeconomic indicators, including consumption, interest rate unemployment rate and inflation rate, and with stock price.

The global financial crisis of 2008 was the most severe financial crisis that the world had experienced since The Great Depression of 1930s. Due to the recession, the Foreign Institutional Investors (FII’s) had disinvested in the Indian market to meet their commitments abroad. This had lead to an increase in the supply of shares in the stock market without a similar rise in demand to offset it. The present study is aimed at showing that this lack of demand for shares in the stock market is one of the reasons for the stock prices to fluctuate in India. In India

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.

The current meltdown in the world markets is shaking the globe today. Not even a single country seems to be off the hook. The high level of inflation has been a wet blanket for the global markets. The roots of the world markets are nearly pulled away with the heavy downfall of the