Academic Journals Database
Disseminating quality controlled scientific knowledge

About stock markets predictability

Author(s): Hicham Benjelloun

Journal: Journal of Economics and Behavioral Studies
ISSN 2220-6140

Volume: 2;
Issue: 1;
Start page: 26;
Date: 2011;
VIEW PDF   PDF DOWNLOAD PDF   Download PDF Original page

Keywords: Stock | Market | Predictability | Confidence | Investors

We argue that the financial markets have a predetermined outcome. They behave deterministically but appear to follow random patterns. Stock prices have nothing to do with future expectations; they are a reflection of previous convictions coming from the confident investors. A financial crisis is the result of the lack of confidence that characterizes a market moments before the crisis. Stocks returns are perfectly correlated to each other and it is possible to obtain high gains consistently. Finally we provide a different way of assessing risk and suggest a method to sense future performances.
Save time & money - Smart Internet Solutions     

Tango Jona
Tangokurs Rapperswil-Jona