What kind of scientific research dominate in the field of Analysis of the effectiveness of stock exchange markets?
Please, provide your suggestions for a question, problem or research thesis in the issues: Analysis of the effectiveness of stock exchange markets.
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I agree.
Stock markets are presumed to be efficient, though insider trading and other criminal activities reduce the purported efficiency.
Well, there are three forms of efficient market hypothesis EMH the weak form, the semi strong and the strong form. Many studies suggest that Stock market are efficient or weak form of ( means the history of the prices repeat itself) thus, technical analysis sometimes works for prediction movements. Others, however suggest that stock market is efficient therefore no arbitrage opportunities exist
Stock markets adjust themselves in the changing market dynamics and in the long run attains its own stability.
I propose the following proposal for a research topic in this area:
Why is the importance of the correlation analysis between the stock market valuation and the economic situation of business entities growing?
Why is the importance of analyzing and conducting research on the correlation between the stock market valuation of securities (stocks, bonds, etc.) and the economic and financial situation of business entities growing?
In recent years, the importance of examining the correlation between stock market valuation of securities (stocks, bonds, etc.) and the economic and financial situation of business entities is growing, because there are more and more anomalies and speculations on capital markets, which may reduce these correlations. The importance of studying this issue is growing particularly when in certain listed markets valuations of certain financial assets and instruments are less and less related to economic fundamentals and the significance of speculation is growing. If such a lack of correlation between the stock market valuation and the economic and financial situation of business entities is growing, then the financial and / or economic crisis may occur. Such a situation of increase in speculative factors on stock exchanges and commodity exchange commodity markets appeared in 2006-2008 and contributed to the global financial crisis in 2008.
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Why is the importance of analyzing and conducting research on the correlation between the stock market valuation of securities (stocks, bonds, etc.) and the economic and financial situation of business entities growing?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Dear Prof. Prokopowicz,
It is a very good question to ask I feel as to whether Rational ExpectationsEquilibrium applies to stock exchange markets, because there isn't much literature apart from Prof. Lucas's (1972) paper on Asset Prices in an Exchange Economy in Econometrica. We have carried out a Dynamic Asset Pricing model with Asset Management control variables in an industrywide ten year Rational Expectations model with corporate finance and banking and monetary policy variables (Mallick, Sarkar, Roy, Duttachaudhuri & Chakraborty (2007)) and derived the rational espectations information technology driven Econophysical equilibrium properties using the Haag Theorem derived (Mallick (1993, 2008))low dimensional partitioning of the information-energy network computationally isotropic to the rational expectations meanfield with various cybernetic physical properties in spacextime, Navier-Stokes stock and flow RHMHM School Dbranes String Functor-Algebra-Calculus (Mallick, Hamburger & Mallick (2016, 2017, 2018)) particle stock and flow systems equilibrium (experimentally verifying the Proof of the Navier Stokes equations in AGGNNNetworks Mallick, Hamburger & Mallick (2016, 2017, 2018)). What we have discovered in the process among a number of things including the new laws of Econophysics which such systems follow is that the Digital Asset Management Natural Systems Econophysics which forms the Econophysical market microstructure of such markets exists. This actually follows Prof. Samuelson's 1960 paper in the Journal of Business of the Brownian Motion model of stock market prices and the corresponding electronic structure fundamental physics using string theory which we have discovered. Sorry for such a roundabout explanation.
Soumitra K. Mallick
for Soumitra K. Mallick, Somak Raychaudhury, Sandipan Mallick and others
of The RHMHM School,
USA, Japan, Russia, India.
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