Transformations and the Long Term Impacts on Investors' Perceptions

The extracted data used includes monthly returns from January 1972 to July 2011. The assets are selected so that the portfolio contains the largest, most liquid, and most tradable assets. The choice of such a variety of assets across several markets was used in order to generate a large cross sectional dispersion in average return. It helped to reveal new factor exposure and define a general framework of the correlated value and momentum effects in various asset classes.

Investment analysis is said to be psychological in various aspects. The irregularity observed in financial markets in recent times has yet again brought to question the practical application of traditional financial theory and the Efficient Market Hypothesis. There is therefore the need to put this base of accepted finance theory under scrutiny. The foundation of one of the broadly examined problems with traditional financial theory is the effect of psychological influences on individuals’ behavior towards investment. According to Slovic (1972), Daniel, Hirshleifer ,Subrahmanyam (1998) and Hilton (2001), they believe that financial markets are functioning at a rapid and increasingly cut throat environment and have been transformed in several ways, one of which is technological. The growing rate of technology has had an immense effect on trading and investment. Technology has aided in allowing information to be easily accessible to investors, but there has been little focus on the issue of interpreting the information skillfully. It is important to note that the appropriate use of information is a crucial part in making investment decisions.

The upcoming presidential election in the US has been making the stock market very volatile. The investors are scared that, if Donald Trump becomes the next president, it will affect the business investments, which in result may put the economy in a recession. His policies for deporting 11 million immigrants, building a wall and starting wars with other countries are some of the few reasons as to why many economists believe that the US economy would shrink by 1 trillion dollars over five years; also, they believe that his policies will destroy 4 million US jobs. This unpredictability of who is going to win the election is making the investors very cautious. This is referred to as the “fear gauge” on the Wall Street. The S&P 500, which is the

Many changes have transcribed in the global market since the years of 2008-2009, the years of what could be dubbed as the “Second Great Depression”. The changes made have been of significant impact as the market has had to accommodate or regulate a great quantity of systems that range from the advancement of technological platforms in the compartment of information technology to the increase in demand of less common forms of energy being established by major corporations such as Tesla’s Powerwall home batteries. The increase of applications via phones have even made it easy for investors, even novice investors, to buy shares in stock markets at an international scale with a push of a button, taking great advantage of what the globe offers in

Prompt: Analyse how aggregate demand, aggregate supply, saving, investing, business cycles, and GDP effect the nation's economy (including types of unemployment, poverty, economic growth, and inflation).

PESTLE ANALYSIS1.Wiggleworth,R.Egypt bleat outlook on debt,09/02/11,ft.com2.Stubbs,J,Investor strategy,13/04/07,ft.com3.Ho,S at all,incomplete transfer phenomena,international marketing reviw vol.5.4.Bevis,G,VAT RISE TO 20%,22/06/10.thisismoney.co.uk5.14/09/10,UK inflation rate,bbc.co.uk6.Gardiner,K,at all, Emerging market fear,09/02/11,ft.com.7.Wolf,M,a STRATEGY FOR GROWTH,10/023/11.FT.COM8.Cohen,N,Price inflation hit,15/02/11,ft.com.9.

Whatever the eventual outcome of the current market volatility, one thing is for certain: Things will never be the same again--nationally or globally. Something is definitely up, or down, and those who have wealth to invest would do wise to heed the warnings of many top investors. Choose wisely when investing--if at all.

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

Regulation of financial markets is very significant for investors in the stock markets, policy-makers, practitioners, and academicians who explore the topic very rigorously. This paper contributes to the field by examining the volatility among stock returns for firms in different segments of the financial services industry. My findings are useful to investors and have significant implication for policy-makers and federal regulators in the United States.

Since the great depression, the global economy has been facing a number of ups and downs. With the markets being built rapidly and crashing down in the other instant, elements that actually make up the skeleton of the international economy seems to have correlated variables. These variables seems to have been correlated with each other in numerous combinations and their correlation is what makes the market fluctuate. The volatility of the global market becomes more apparent in times of recession when the correlation between variables like stocks, bonds, US dollar, Euro, gold and oil becomes more apparent. Therefore, it is of paramount importance that these correlated variables should be studied with a very keen eye. Since the link between currencies, commodities, stocks an bonds runs very deep, change in any one of them seems to have a profound impact on the rest hence changing the face of the market.

EHRLICH, J. H. (1986). INTERNATIONAL OF STOCK MARKETS: POTENTIAL PROBLEMS FOR UNITED STATES SHAREHOLDERS. J. INT'L L. & BUS.

In addition, table 1 details the results of the model “∆Quoted spread or ∆Effective spread = β0 + β1 ∆(TACC/TA) + β2 ∆(1/Price) + β3 ∆Return volatility + β4 ∆Log(Dollar trading volume) + β5 ∆Log(Market value of equity) + ε” created by the same researchers who formed table 2. The effective spread is the average effective percentage spread at time t while quoted spread is the average quoted spread at time t. The change is calculated from subtracting pre-SOX averages from post-SOX averages. Data was sampled from 588 firms over three years (from January 1, 2001 to December 31, 2004). The main significant variable is the change in volatility. This variable shows a statistically significant change at the 1% level. After the passage of SOX, market

Understanding market risk is crucial in determining the factors that threaten one’s ability to attain returns from a particular project, single stock, or a portfolio. The impact of market risks is crucial to determining stability and the return on an investment. Many factors impact the market risk which effect both global and country economies. Market risk allows a firm to estimate the risk and return on projects or investments. Generally the riskier the project, the higher the returns. Market risk is predictable over time; although the predictions are not perfect, one can gain understanding into the effects the market will have on investment or how the investment will react to

The stock market is like a playground for business. Business’s either collapse or succeed when stock prices go up or down depending on the market at the time; it’s like gambling. The stock market is a medium for business’s and investors who want to be part

The "Big Three" global credit rating agencies have garnered immense scrutiny and criticism for the role they played in the financial crisis and rightly so—they were not only at the epicenter of this colossal debacle but also exacerbated it. There is overwhelming evidence suggesting that the marketing and sale of the MBSs at the core of this crisis would have been virtually impossible without the CRAs signing off. The catastrophically inaccurate ratings they granted to securities they rated helped the markets rally and their eventual massive downgrades left not just the US but also the world economy in utter disarray. In spite of what arguments these agencies come up with to shy away for any responsibility the fact remains that they chose big fees and bigger market shares over integrity in a business that relies on integrity.