Contrary to Robert Shiller's Predictions, Stock Market Investors Made Much Money in the Past Decade: What Does This Tell Us?

2006 ◽  
Vol 3 (7) ◽  
Author(s):  
J. Bradford DeLong ◽  
Konstantin Magin

The globalization of monetary markets has been increasing the dimensions of retail investor community over the past three decades by providing a good sort of market and investment options. Hence, it makes their investment decisions process more complex. The present study aims to study the awareness of investors on stock market. The data were collected from 100 retail stock market investors of Chennai using structured questionnaire. The analysis is made using percentage and mean value. The study proves that post graduate, professional, high income level investors are aware of investment patterns through friends, neighbors and they yield a good income. The study also reveals that the retail investors are even aware of the fundamental and technical analysis of investment, which helps them for a better and wise investment.


In order to find more sophisticated ways to remain in competition in the stock market, investors and analysts are finding procedures based on nature-inspired artificial intelligence-based algorithms. It is seen that interest of researchers has grown in these technologies in the past years. These newer techniques have changed the investment arena of the stock market. A lot of thought process, hard work, creativeness, and knowledge about these algorithms are required to implement them in the stock investment area. In the past, few people have had the privilege to implement and obtain better results by using these algorithms. But with the access to affordable computing systems and experts with the knowledge of these computing systems, we can take advantage of making profit from the market. This chapter explains the detail working of these AI techniques such as chaos theory, neural networks, fuzzy logic, and genetic algorithms in detail.


GIS Business ◽  
2018 ◽  
Vol 13 (1) ◽  
pp. 1-9
Author(s):  
Gunjan Sharma ◽  
Tarika Singh ◽  
Suvijna Awasthi

In the midst of increasing globalization, the past two decades have observed huge inflow of outside capital in the shape of direct and portfolio investment. The increase in capital mobility is due to contact between the different economies across the globe. The growing liberalization in the capital market leads to the growth of various financial products and services. Over the past decade, the Indian capital market has witnessed numerous changes in the direction of developing the capital markets more robust. With the growing Indian economy, the larger inflow of funds has been fetched into the capital markets. The government is continuously working on investor’s education in order to increase retail participation in the Indian stock market. The habits of the risk-averse middle class have been changing where these investors started participating in the Indian stock market. It is an explored fact that human beings are irrational and considering this fact becomes imperative to investigate factors that influence the trading decisions. In this research, ‘an attempt has been made to investigate various factors that affect the individual trading decision’. The data has been collected from various stockbroking firms and from clients of those stockbroking firms their opinions were recorded by means of a questionnaire. Data collected through the structured questionnaire, 33 questions were prepared which was given to the 330 respondents on the basis of convenience sampling out of which 220 individuals filled questionnaire, the total of 200 questionnaires was included in the study after eliminating the incomplete questionnaire. Various factors are being explored from the literature and then with the help of factor analysis some of the most influential factors have been explored. Factors like overconfidence, optimism, cognitive bias, herd behavior, advisory effect, and idealism are the factors which influenced the trading decision of the investors the most. Such kind of a study is contributing in the area of behavioral finance as a trading decision is an important aspect while investing in the stock market. And this kind of study would be helping and assisting financial advisors to strategies for their clients in making the right allocation and also the policy maker and market regulators to come up with better reforms for the Indian stock markets.


2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Dr. Kamlesh Kumar Shukla

FIIs are companies registered outside India. In the past four years there has been more than $41 trillion worth of FII funds invested in India. This has been one of the major reasons on the bull market witnessing unprecedented growth with the BSE Sensex rising 221% in absolute terms in this span. The present downfall of the market too is influenced as these FIIs are taking out some of their invested money. Though there is a lot of value in this market and fundamentally there is a lot of upside in it. For long-term value investors, there’s little because for worry but short term traders are adversely getting affected by the role of FIIs are playing at the present. Investors should not panic and should remain invested in sectors where underlying earnings growth has little to do with financial markets or global economy.


2000 ◽  
Vol 23 ◽  
pp. 79-102 ◽  
Author(s):  
Elif Akçetin

The effects of the Great Depression of 1929 on peasants in Turkey is an area of study that has remained neglected, despite the fact that peasants then constituted 75 percent of the population. The reason why the condition of peasants has not attracted much attention is the dramatic change between the economic policies of the 1920s and those of the 1930s. The immediate consequence of the stock-market crash and the sudden drop in prices was the shrinkage of international trade. Governments dealt with the depression by implementing quotas on imports, and liberal economic policies were no longer considered successful. Protectionism became the most popular policy for the management of economies in difficulty. The change in economic policies during this period constituted a break with the past and therefore has been the principal focus of studies on the Great Depression.


2016 ◽  
Vol 4 (2) ◽  
pp. 243-249
Author(s):  
Ravi Kumar ◽  
Rohini Sajjan

Investment mistakes happen for a multitude of reasons, including the fact that decisions made under conditions of uncertainty that are irresponsibly downplayed by market gurus and institutional spokespersons.  Losing money on an investment may not be the result of a mistake, and not all mistakes result in monetary losses. But errors occur when judgment is unduly influenced by emotions, when the basic principles of investing are misunderstood, and when misconceptions exist about how securities react to varying economic, political, and hysterical circumstances. Proper planning and using of techniques, strategies can come as rescue to the investor and help in reaping profits and avoiding the blunders that are commonly observed. The paper investigates the basis for investment patter by the investor, their techniques and strategies adopted and guidelines to be followed to avoid the common blunders made by them leading to fewer losses they would face otherwise.


2015 ◽  
Vol 4 (4) ◽  
pp. 18-28
Author(s):  
Shuang Feng ◽  
Jon Stewart

The Chinese stock market is an emerging market that has gained much importance over the past few decades. Because of this, it also serves as a great subject for studying market inefficiencies and anomalies. In this paper we provide a review of evidence regarding the development, efficiency and integration of the Chinese stock market. In particular, we review recent literature in the areas of market segmentation, cross-listings and calendar effects. This provides evidence of market inefficiency in China. We also pose questions that can be answered in future studies.


2021 ◽  
Vol 2 (5) ◽  
pp. 349-365
Author(s):  
Rashesh Vaidya

The paper attempts to examine the experience of the Nepalese investors at the secondary market. The paper explored the investment decisions process of the Nepalese investors. The paper has adopted the grounded theory to generate the theory from the data collected from the semi-structured interview from the stock market investors having an academic background in management. The findings revealed that the investors are eager to invest in the stock market and go for a better experience from their trading at the NEPSE floor. The study exposed a mixed opinion in context to the understanding of the macroeconomic aspects and their influence on investment decisions. The investors forwarded that there is no relation between their investment decision-making process and the macroeconomic factors, while some of the investors stated that they see a connection of the economy with the stock market directly or indirectly. The study came out that the major concern of the Nepalese investors is a fundamental aspect of the listed companies while selecting for an investment. At the same time, investors stated that they go for technical analysis or follow the market trend for the short-term trading at NEPSE floor. The investors are seen at one point that the unstable political situation and insider trading have been major challenges, in context to the Nepalese stock market. Finally, the excessive flow of information related to the listed companies either with some validity or not, makes an investor’s investment decisions go wrong. 


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