Transcript Equity Markets around the World in a Bubble

Equity Markets around the
World in a Bubble ?
Stock market bubble - definiton
• A stock market bubble is a type of economic
bubble taking place in stock markets when
market participants drive stock prices above
their value in relation to some system of stock
valuation.
• Stock price/GDP is above historical level
Do the stock
markets bubble
exist?
Yes
• Stocks are sometimes sold for market price
that is higher than their real value
• Countries which execute higher control over
their economy and political system, are able
to cover real situation on the markets
Example how the bubble looks like
No
• The factors influencing the stock makret
stands outside the market
• Eg. The collapse of oil prices, rise of the US
dollar
Conslusion:
• The fact, if the bubble exists, differs from
country to country
• The impact of the stock market bubbles on the
economy depends on the ratio of tradable
value of the GDP
• Wisnu Widiyantoro, Pavlina Rucki