Transformations and the Long Term Impacts on Investors' Perceptions

1920 Words8 Pages
Questions For many, the markets are a place that creates confusion and uncertainty. This is because these changes will have an adverse impact on their interpretations of different events. The results are that the indices will become increasingly volatile. These factors mean that the emotions of fear and greed will drive these movements. To fully understand these elements requires focusing on the causative variables, the relationship between the different indicators, interpreting the coefficients / providing an analysis of the correlation coefficient values and a summary of what was discovered. Together, these elements will highlight the way these transformations are occurring and the long term impacts they will have on investors' perceptions of underlying events. (Weinstein, 1988) (Graham, 1976) List each of the causative factors in bulleted form. For each factor, briefly analyze the nature (positive or negative) and degree (severity) of the impact on each of the three indicators. You must analyze why stocks and bonds values increase or decrease. The different market indices that will be examined include: the Dow Jones Industrial Average, the NASDAQ Index and the 10 Year US Treasury Note Yield (10 Yr T-Note Yield). Understanding the relationship between them will offer specific insights as to various factors impacting volatility. It will also highlight potential changes and the lasting effects on everyone. (Weinstein, 1988) (Graham, 1976) June 24th stocks on the DJIA /
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