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Questions related to Financial Markets
I am seeking professional input on addressing climate change. In my work, I have seen decades of debate or hesitation of buy in by financial markets to actually address the main problem at play: the anthropogenic over-production of carbon dioxide and destruction of planetary carbon sinks. When we address this anthropogenic problem we say human-caused climate change or global warming or climate crisis. So far, despite saying we need to change, little action, especially in finance, takes place, especially on the scale needed. Often, the problem itself is too confusing and too large of a problem to really tackle a solution that is obvious and measurable.
My scope of work is looking at changing the common vernacular use of climate change to address the exact problem at hand: the anthropogenic over-production of dissolved CO2 gas into the atmosphere and destruction of planetary carbon sinks. The goal is to call that Global Carbon Crisis vs. what we have been calling it with confusion, climate change. After all, climate change has been an ongoing, natural process since the advent of polar ice caps.
The additional piece I am looking to address is the effective measurability which is already an infrastructure in place, called the Global Carbon Index. Essentially measuring a specific location CO2 production by contrast to overall global production at time of measurement.
What I am hoping to accomplish is a discussion if climate change to address this real problem should be used any more and why or why not. Also, to discover if fellow researchers feel this work is warranted to develop a systematic means to solve this difficult problem to assist buy in with financial incentives by using a defined unit of measure, the Global Carbon Index, to incentivize or discourage current production.
Could the failure of Silicon Valley Bank and Signature Bank be the start of a domino effect of failing financial system entities and the beginning of a new financial crisis?
Have credit procedures and risk management processes really improved after the global financial crisis of 2007-2009, since major banks are still failing, which may cause severe turbulence on the financial markets, including capital markets, securities markets and, consequently, may also deepen the already developing economic crises?
On Monday 13.03.2023, the situation shaping the capital markets was influenced by the developing news in many media that one of the largest banks in the USA, i.e. Silicon Valley Bank, had declared bankruptcy. The collapsed SVB bank was taken over by the state-owned Federal Deposit Insurance Corporation (FDIC, Federal Deposit Guarantee Corporation) on Friday 10.03.2023 after the bank was unable to pay out money to customers withdrawing their deposits in a panic. SVB is the 16th largest bank in the US and has served a significant proportion of Silicon Valley startups, companies and funds. Silicon Valley Bank was the largest collapse in the banking sector since the 2008 Lehman Brothers collapse and the onset of the 2007-2009 global financial crisis. At the end of 2022, SVB had more than $209 billion in assets. But the collapse of Silicon Valley Bank (SVB) is not the end of the problems in the financial markets. On Monday 13.03.2023, news hit the media that another bank is failing. Customers worried about their deposits also called many of their other banks to check that their money was safe. This second spectacular failure in the financial system is New York's Signature Bank, which was shut down by state market regulators on Sunday. According to the Reuters news agency, this is the third largest bank failure in US history. It is also another spectacular bankruptcy of a major financial institution overseas in just a few days. New York-based Signature Bank is a US financial institution that, at the end of 2022, had customer deposits worth almost USD 89 billion and USD 110.36 billion in assets. According to published official figures, almost a quarter of these funds came from cryptocurrencies. This raises a key issue to be resolved regarding the extent to which credit procedures and the credit risk management process at financial institutions have improved over the last 15 years, i.e. after the onset of the 2007-2009 global financial crisis. I have described the determinants and root factors of the 2007-2009 global financial crisis, including the mistakes made in credit risk management, in my articles on this issue, which I posted on my profile of this Research Gate portal after publication. I would like to invite those conducting research on this issue to join me in research collaboration on issues and factors for improving the credit risk management process in financial institutions.
In view of the above, I would like to address the following questions to the esteemed community of scholars and researchers:
Could the failure of Silicon Valley Bank and Signature Bank be the beginning of a domino effect of failing financial system entities and the start of a new financial crisis?
Have credit procedures and risk management processes really improved after the global financial crisis of 2007-2009, since major banks are still failing, which may cause severe turbulence on the financial markets, including capital markets, securities markets and, consequently, may also aggravate the already developing economic crises?
What do you think about this topic?
What is your opinion on this subject?
Please respond,
I invite you all to discuss,
Thank you very much,
Warm regards,
Dariusz Prokopowicz
As entropies diffuse swiftly around the realm of expanding science and shifting circumstances in the plasma of time, new major risk factors appear. Others lost importance.
What may have been described as exogenous in the past, may have altered its properties significantly. Of the risks which can be measured or assessed qualitatively some may now be better identified and (re)classified.
Happy for novel independent and waning risk factors in the different branches of sciences. In nature speculative based on observations, so an informal Menti would be beneficial.
The Quantum Computing can is not that far down the road.
Should companies operate without much oversight with a different goal setting than society?
in most of studies in financial market, risk management and pricing, the recherchers propose models and measurement techniques, and they do not construct assumptions and report variables like other quantitative studies.
What are the major idiosyncratic pitfalls in the design of Carbon Markets?
Specific agency problems, such as the problem of how the government invests the proceeds of the economic windfall and sets the taxes?
What are the arbitrage mechanisms between the segments?
Which new class of risk has been introduced?
They are the two schools of thought when it comes to analysing financial markets
Cherish your view on this data issue.
Quantitative/Qualitatitive ESG vs. Deep Culture. What do you trust more?
Have central banks caused in the past more climate change due to an ultra-long period of low-interest rates and QE, or have the green initiatives sidelined by more and more central banks helped contain climate change?
What is your take on a historical perspective?
Is it appropriate for the development of financial markets and the economy that above-average profits can be made by inducing financial and/or economic crises through speculative transactions carried out with the help of derivatives made in the capital markets liberalized in recent decades?
And if NOT, how should the standards and rules of financial markets be improved, so that in this way it is not possible to deliberately cause financial and/or economic crises and escalate the development of negative economic processes?
How should the standards and rules of operation of financial markets be improved, so that the scale of deliberate triggering of financial and/or economic crises through the use of speculative transactions carried out with the help of derivatives, transactions carried out in certain capital markets, is significantly reduced?
In the past, already since the commodity crises of the 1970s, the period of the beginning of the development of various new types of derivatives, the increase in the scale of deregulation and liberalization of the operation of financial markets, the change of international monetary systems through the replacement of the Bretton Woods system with free exchange rate systems, the scale of instability in financial markets, including capital markets, currency markets, stock exchanges has increased significantly. During the global financial crisis of 2007-2009, data emerged confirming the facts of speculative activities by some investment banks, which increased the scale of development of the aforementioned crisis. Also, at the beginning of March 2020, when the World Health Organization declared the state of the global epidemic, i.e. the so-called SARS-CoV-2 (Covid-19) coronavirus pandemic, this fact also triggered a strong increase in the volatility of asset valuations in the capital markets. When new events suddenly appear that generate uncertainty, fear then financial risks, credit risks, currency risks, liquidity risks, debt risks, etc.increase, which causes an increase in volatility in financial markets. Institutions that take advantage of this kind of situation, institutions that have sensitive information, use this kind of information and, on the basis of this information, carry out insider trading in certain capital markets are an example of imperfect functioning of financial markets. Such instances of imperfect functioning of financial markets, including capital markets, should be detected and limited by institutions established for this purpose, such as the Securities Commission, the Financial Supervision Commission, the Banking Supervision Commission, etc. The functioning of financial markets should be improved, and the rules, standards and procedures of individual institutions and segments of financial markets should be perfected. When it is the so-called small, small stock market investors then it is assumed that this is a positive factor in ensuring a certain level of liquidity in the capital market. However, when transactions are carried out by large financial institutions, including banks and investment funds with the involvement of large financial resources in an amount, for example, comparable to the value of the state budget of a small country, then there are quandaries about the possibility of deliberate not only exploitation of situations of instability in financial markets, but also about possible actions that amplify or even inspire these instabilities. For example, military actions and failures of critical infrastructure installations, high-risk system infrastructure, energy sector infrastructure can be factors that cause a significant increase in asset price volatility in capital markets, including energy commodity prices on commodity exchanges and securities prices on stock exchanges. A recent example would be failures, perhaps sabotage actions carried out on pipelines filled with natural gas causes destabilization in energy commodity price markets. This causes the currencies of small economies, i.e. Poland, for example, to fall. In addition, a significant increase in interest rates on the currencies of large economies like the US and the EU increases the scale of the decline in the currency of a small, developing economy and one that is highly exposed to the energy crisis. In addition, the war in Ukraine is taking place next to Poland. In addition, large, internationally operating investment banks can take advantage of this situation to conduct profitable speculative transactions using currencies characterized by a high level of exchange rate volatility and susceptibility to certain defined influencing factors. A decline in the exchange rate of the Polish national currency PLN will cause additional difficulties in the central bank's anti-inflationary, interventionist monetary policy. The topic of the need to improve the issues of the functioning of financial markets, including the improvement of the rules, standards and procedures for the operation of individual institutions and segments of financial markets is still relevant.
In view of the above, I address the following question to the esteemed community of researchers and scientists:
How should the standards and rules of operation of financial markets be improved, so as to significantly reduce the scale of deliberately causing financial and/or economic crises and escalating the development of negative economic processes?
How should the standards and rules of financial markets be improved so that it is not possible to deliberately cause financial and/or economic crises through the use of speculative transactions carried out with the help of derivatives, transactions made in certain capital markets?
How should the functioning of financial markets be improved systemically, institutionally, organizationally and normatively so as to reduce the scale of triggering financial and/or economic crises?
What are your thoughts on this topic?
What is your opinion on this issue?
Please answer,
I invite everyone to join the discussion,
Thank you very much,
Warm regards,
Dariusz Prokopowicz
What is the technique which I use to convert the annual ESG score data to (Monthly, weekly, or daily data) with good accuracy?
AND how can I apply via Python?!
Are today's financial markets over-regulated, optimally normatively regulated or overly deregulated and liberalised in their functioning?
Since the commodity crisis of the 1970s, financial markets have been deregulated in many respects. The Bretton Woods international monetary system based on USD dollar parity collapsed (gold parity for the USD dollar was abolished). In the 1990s, many issues of the operation of deposit-credit commercial banks and investment banks were deregulated again.
It was made possible for the two types of banking to merge. This had its effects in generating the global financial crisis of 2007-2009. Due to the deregulation of financial markets, systemic credit risk increased significantly. The importance of improving the credit risk management process implemented in financial institutions, including commercial and investment banks, also increased. In many countries, the practice of money printing without coverage of manufactured products was practised, leading to increased inflation and, in some countries, to the occurrence of hyperinflation. Too low interest rates and government guarantees and other elements of a soft monetary policy led to too cheap money, too high a level of credit for economic activity and too high a level of credit risk, a decline in the repayment of bank loans and, as a consequence, to financial, economic and debt crises, etc. Derivatives specifically generated for this purpose, including credit derivatives such as subprime bonds, CDOs, etc., sold by investment banks to successive investors to generate additional money for unreliably (with practically no credit checks) granted mortgages, led to the major global financial crisis of 2008 in 2007-2009. I have been researching this issue. I have included the conclusions of my research in articles which, when published, I posted on my profile of this Research Gate portal. I invite research collaboration. I would like to hear your views on this issue.
In view of the above, the following question is topical:
Are the current financial markets over-regulated, optimally normatively regulated or are they too deregulated and liberalised in their functioning?
What do you think about this topic?
Please reply,
I invite you all to discuss,
Thank you very much,
Greetings,
Dariusz Prokopowicz
Though it has been a few decades since Chaos Theory made its way into Economics and Finance through the works of Baumol & Benhabib, Alison Butler, David Levy, Philip Mirowski, Michael McKenzie, Robert Gilmore and Blake LeBaron
(among others), it is observed that most of the mainstream economics and finance journals are reserved towards publishing empirical papers on chaos in financial markets. Publications to this end are very few and most of them are published in a handful of journals.
As I am looking forward to write empirical papers examining the evidence of chaos in commodity markets, I wish to know the odds of my work seeing the light of the day. Any useful suggestion/information in this regard would be highly appreciated.
About Lend Tech (Lending Technologies) as one of the Fin Tech sections, do you know an article or scientific report to introduce? To discuss and conclude on the following topics.
Ways of developing Lend Tech, its effects, Its dimensions, Difficulties, challenges, opportunities it can create in the financial market, its effects on investment and so on.
thanks.
When we forecast financial markets (such as stock returns), we may use a variable without transformation (i.e., level). However, a growing body of research uses first difference, log difference, regression residual, regression slope, and time trend instead of the level. That is, markets react to new or future information (innovations) instead of the expected information (such as the level). Please provide more explanations and discussions.
i have to compute the average return of Nifty-50 Index of indian stock market for the financial year april,2016 to march,2017.
i calculated daily returns and took the average of the daily returns. but, it is just 1.34% because, abnormal positve and negative returns during the period
How to prepare a smoothened series of nifty returns and to compute year average of the index.
thanks in advance
In my current research, I'm trying to describe the thinking of the people during the financial crack of 1929 in the united states, mainly in the times where the stock market bubble began its gestation.
Hello, is there any way to obtain the Kyle lambda or a price impact parameter starting from the bid-ask spread if the traded volumes are not available? Unfortunately Refinitiv does not offer the OTC transactions data. Therefore, for corporate bonds we have plenty of information on bid-ask spread, but most of them have no volume. I am aware of the Back and Baruch (2004) paper (https://www.jstor.org/stable/3598909), however it gives an approximation of the Kyle lambda using the bid-ask spread when volumes are known.
Thanks a lot
I am learning ml, data science for data crunching of financial market data for my trading in financial market . I want to make a terminal which takes live data from NSE and do certain task(some calculation , graph representations ,ml model to run on data )but don't know is it possible with ml and python or have to go through whole software development road . so pls help me to figure out what i need to learn for this and how to do this .
Respectfully
Does the influence, type, scope of economic and economic information on the current situation on the financial markets and the condition of macroeconomic determinants describing the entire economy and how they are presented in the media can have a significant impact on investors, especially the so-called small investors, including households, on investment decisions made on the capital markets and thus on the future situation on these markets?
The key issue is social psychology, the psychology of investors operating on capital markets, the ability to influence stock market trends by providing key information in the media on the macroeconomic situation of the country and information provided by rating agencies, large banks and investment funds, central banks, financial supervisors, research institutes and government agencies.
Is it possible to use the available classic and new media, including the Internet by large commercial financial institutions for their own needs, eg attempt to trigger certain changes in stock exchange trends by providing economic information to the media that may affect investment decisions made by investors?
Are there known, diagnosed, investigated such situations?
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question:
Can economic news in the media influence the psychology of investor behavior in the capital markets?
Please reply
I invite you to the discussion
Thank you very much
This issue is described in the following publication:
I invite you to discussion and cooperation.
Best wishes
What kind of scientific research dominate in the field of global financial crisis?
In my opinion, globalization is leading to the Integration of Business Cycles.
In this way, globalization may deepen economic crises, including the global financial and debt crisis. An example was the global financial crisis, which appeared in mid-September 2008.
At that time bankruptcy was announced by one of the largest investment banks in the world.
As a result of unreliable credit risk management procedures, billions of USD of financial losses have been generated.
It turned out that the unwritten rule no longer works, that "big can not fall". However, it is the emergence of ever larger international corporations and financial institutions that is one of the main determinants of the processes of economic globalization that have been progressing in recent years these processes continue.
(The continuation of these considerations can be found in the comments below).
Do you agree with my opinion?
Please reply
I conduct research in key aspects of this issue. The results of these tests are described in the following publications:
I invite you to discussion and cooperation.
Best wishes
Does economic globalization have a significant impact on the development of international financial systems and on the operation of supranational capital markets?
Is the globalization of information related to the growing share of the Internet in the global dissemination of information on the situation on financial markets also related to economic globalization?
What is your opinion on this issue?
Please reply
Thank you very much
Dear Friends and Colleagues of RG
The issues of globalization of financial and banking systems are described in the publications:
I invite you to discussion and cooperation.
Thank you very much
Best wishes
What kind of information in the field of financial market psychology is in your opinion the most important, which should be taken into account when conducting technical analyzes of the valuation of securities listed on the stock exchange in order to achieve the best results from investing activities?
Please reply
Best wishes
Could you please explain it in simple words in terms of trade competitiveness pressure, multinationalization of production and integration of financial markets. Also, exchange rates of state's currency.
Hi everyone! I would like to write my bachelor's thesis on a topic that's currently relevant in the sphere of finance, marketing or computer science (or if it's possible a topic concerning all the three fields of interest). Those fields are the same upon which my bachelor is based (Bachelor of Science in Economics, Management and Computer Science).
I've some broad ideas about the topics, for example: the link between brand equity and financial performance; the effects of aggressive marketing on financial markets; the new generation of traders (covid has increase the number of retail investors with no previous experience); machine learning applied to behavioral finance (I really enjoy those last two topics but have no idea on how to connect them).
Obviously any kind of suggestions, regarding new topic (broad or specific) or the development of cited ones would be greatly appreciated.
Thank you in advance!
Hello,
I am estimating a time series of S&P 500 stock returns from 2013-2020 (monthly data) with OLS (specifically using CAPM, Fama French 3-factor and Cahart 4-factor models).There is a structural break in March (big fall in the stock prices) and April (big rise in stock prices) in 2020 because of the uncertainty on the financial markets. The dependent variable is monthly stock returns. I have tried to include dummy variables (one for the downturn and one for the up turn) to go around the problem with the structural breaks, however they are not significant (or significant, but often with the wrong coefficient sign: positive sign when downturn in March and negative when upturn in April). The reason for this is that one of the independent variables in the model (market risk premium) already accounts for the big fall in March and the rise in April.
Now, it seems like it does not make any sense to include dummy variables in my case. However, I'm in doubt whether it gives my model any major problems that an already included independent variable (market risk premium) takes this into account? Is it fine just to estimate my model as it is, or does this structural break give any (major) problems (econometrically) that I don't account for?
Thank you very much in advance!
Sincerely,
Edin
Has the scale and instances of dissonance increased since the 1970s, and the disparity between the macroeconomic situation and the economic situation of a particular national or global economy, including economic growth, etc., and the situation on capital markets, including securities markets?
The above discussion inspired me to the following considerations: Well, since the development of the deregulation process, the increase in the globalization of financial markets, the introduction to the financial markets of many derivatives without full supervision by financial supervision institutions, i.e. since the 1970s the frequency has increased and the scale of emerging financial and economic crises in various parts of the world. At the same time, perhaps the business cycles are increasingly influenced by the monetary policy of central banks and fiscal policies of governments mainly of the world's largest economies. The result may be a growing discrepancy, a growing disproportion between the macroeconomic situation and the situation of a particular national economy or global economy, including economic growth, etc., and the situation on capital markets, including securities markets.
What do you think about this topic?
What is your opinion on this topic?
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Has the scale and instances of dissonance increased since the 1970s, and the disparity between the macroeconomic situation and the economic situation of a particular national or global economy, including economic growth, etc., and the situation on capital markets, including securities markets?
Please reply
I invite you to discussion
Thank you very much
Best wishes
I will be grateful for your answers. Or if you have any suggestions in the field of finance, banking.
Could you know what are Historical diseases / pandemics in the past reflected on Global economy and Financial markets in the past?
like Spanish influenza that spread in 1918 and reached peak in 1920 impacted on the global economy?
There were another pandemics in the past had significant impact on the global economy and/or financial markets ?
There were many and many pandemics (e.g., Ebola, SARS 2003, H1N1, .... etc)
So, which one or more of them have significant impact on Economy / financial market even globally or in specific countries (i.e., SARS 2003 impacted on China's Economy)
Kindly, Let's share and discuss
Thanks in advance
Ahmed
Does the global financial crisis of 2008 still have significant importance on capital markets attributed to behavioral psychology of the behavior of investors operating in these markets?
Are the determinants of behavioral investors' factors still strong in recent years on the largest stock exchanges in the world, including the importance of financial market psychology in interpreting changes in stock exchange trends in these markets?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Dear Community,
Could you please suggest to me some journals that study emergent countries and/or emergent financial markets ?
I thank you all in advance.
here I wanted to study each dimension of marketing efforts that online retailers use to reduce customers perceived risk categories as follows;
Financial marketing efforts like COD, payment options, least price guarantee, sales, discounts, buy one get two, etc
product/physical marketing effort like try and buy offer, no question return policy, quality assurance policy,etc
time/delivery marketing effort like fast delivery, order tracking, choice of delivery time,etc
here am I right to use term "marketing efforts" for those statements?
or can I get any measuring scale which can incorporate all prevailing offers that online retailers provide to their customers?
or how my study be designed to study those all offers and schemes by online retailers from how much they value to customers?
Do the significant revaluation of stock quotes on stock exchanges occurring every few or a dozen years is an objective specific feature of this type of financial market or rather it is imperfection of these markets resulting from too high a level of liberalization and deregulation of the mechanisms of these markets, including the reduction control functions of financial supervision institutions?
Since the 1970s, the functioning of individual segments of financial markets has been successively liberalized and deregulated, including primarily the issue of investment banking, international markets and exchange rate systems, rating agencies, financial adversity institutions and financial entities and instruments operating on the securities market. During this time, the scale of the re-valuation of valuations of securities, derivatives, commodities and other assets on the capital markets reached ever higher levels, then spectacularly transformed into a strong decline in these valuations leading to a financial and economic crisis. The last financial crisis in 2008 in many respects, including numerous negative aspects, generated the unruly records characterizing the highest level of investment risk and the scale of financial losses generated by many commercial financial institutions and industrial corporations, which then under the active, interventionist, anti-crisis monetary policy of banking were financed indirectly by public finance funds. Due to this cyclical nature of capital markets, characterized by the growing amplitude of economic fluctuations during periods of bull market and bear market at high levels of overvaluation and investment risk levels and deeper global financial and economic crises, large financial institutions, including investment banks, are becoming larger entities and costs neutralizing the negative aspects of crises is paid off by the whole society, especially by the relatively less-earning middle class.
In the light of the above, encouraging discussion, I turn to you with the following question: Has the time finally come to reform the functioning process and the system of financial markets by restoring former control functions of financial supervision institutions that have been abolished, reduced since the 1970s?
Are increasingly deep financial crises derived from the liberalization and deregulation of financial markets?
Please, answer, comments. I invite you to the discussion.
Application of Big data analytics in banking and financial markets
What are the possible factors that should be considered to explore the impact of COVID-19 on Financial markets and eventually on economy of a country.
The outbreak of pandemic Covid-19 all over the world has disturbed the political, social, economic, religious and financial structures of the whole world. World’s topmost economies such as the US, China, UK, Germany, France, Italy, Japan and many others are at the verge of collapse. Besides, Stock Markets around the world have been pounded and oil prices have fallen off a cliff. In just a week 3.3 million Americans applied for unemployment and a week later another 6.6 million people started searching for jobs. Also, many experts on economic and financial matters have warned about the worsening condition of global economic and financial structure. Such as Kristalina Georgieva, Managing Director of International Monitory Fund (IMF), explained that “a recession at least as bad as during the Global Financial Crisis or worse”. Moreover, Covid-19 is harming the global economy because the world has been experiencing the most difficult economic situation since World War-II. When it comes to the human cost of the Coronavirus pandemic it is immeasurable therefore all countries need to work together with cooperation and coordination to protect the human beings as well as limit the economic damages. For instance, the lockdown has restricted various businesses such as travelling to contain the virus consequently this business is coming to an abrupt halt globally.
Keeping in a view the staggering situation G-20 nations called an emergency meeting to discuss worsening conditions and prepare a strategy to combat Covid-19 as losses could be reduced. The spread of the epidemic is picking up speed and causing more economic damages. It is stated by the U.S. official from federal reserves that American unemployment would be 30% and its economy would shrink by half. As for as the jobs of common people are concerned, there is also a real threat of losing their jobs because with business shutting down that shows that companies will be unable to pay to workers resultantly they have to lay off them. While when it comes to the stock market, it is severely damaged by Covid-19 such as the stock market of the United States is down about thirty percent. By looking over the existing condition of several businesses, most of the investors are removing its money from multiple businesses in this regard $83 billion has already removed from emerging markets since the outbreak of Covid-19. So, the impact of Covid-19 is severe on the economic structure of the world because people are not spending money resultantly businesses are not getting revenue therefore most of the businesses are shutting up shops.
It also observed that the economic recovery from this fatal disease is only possible by 2021 because it has left severe impacts on the global economy and the countries face multiple difficulties to bring it back in a stable condition. Most of the nations are going through recession and collapse of their economic structure that points out the staggering conditions for them in this regard almost 80 countries have already requested International Monetary Fund (IMF) for financial help. Such as Prime Minister of Pakistan Imran Khan also requested IMF to help Islamabad to fight against Novel Coronavirus. Furthermore, there is uncertainty and unpredictability concerning the spread of Coronavirus. So, the Organization for Economic Cooperation and Development (OECD) stated that global growth could be cut in half to 1.5% in 2020 if the virus continues to spread. Most of the economists have already predicted about the recession to happen because there is no surety and still no one knows that how for this pandemic fall and how long the impact would be is still difficult to predict. Besides, Bernard M. Wolf, professor, Economics Schulich School of Business, said that “it is catastrophic and we have never seen anything like this, we have a huge portion of the economy and people under lockdown that’s going to have a huge impact on what can be produced and not produced”.
As Covid-19 has already become a reason for closing the multiple businesses and closure of supermarkets which seems empty nowadays. Therefore, many economists have fear and predicted that the pandemic could lead to inflation. For instance, Bloomberg Economics warns that “full-year GDP growth could fall to zero in a worst-case pandemic scenario”. There are various sectors and economies that seem most vulnerable because of this pandemic, such as, both the demand and supply have been affected by the virus, as a result of depressed activity Foreign Direct Investment flows could fall between 5 to 15 percent. Besides, the most affected sectors have become vulnerable such as tourism and travel-related industries, hotels, restaurants, sports events, consumer electronics, financial markets, transportation, and overload of health systems. Diane Swonk, Chief Economist at the Advisory Firm Grant Thornton, explained that “various nations have multinational companies that operate in the world because the economy is global. For instance, China has touchpoints into every other economy in the world, they are part of the global supply chain. So one should shut down production in the U.S. by shutting down production in China”. Besides, Kristalina Georgieva in a press release suggested that four things need to be done to fight against Covid-19 and avoid or minimize losses. Firstly, continue with essential containment measures and support for the health system. Secondly, shield affected people and firms with large timely targeted fiscal and financial sector measures. Thirdly, reduce stress to the financial system and avoid con tangent. Fourthly, must plan for recovery and must minimize the potential scaring effects of the crisis through policy action. Concerning the serious and worsening conditions all over the world, nations need cooperation and coordination among themselves including the help and mature as well as sensible behaviour of people to effectively fight against Coronavirus. Otherwise, because of the globalized and connected world, wrong actions and policies taken by any state will leave a severe impact on other countries as well. This is not the time of political point-scoring and fight with each other rather it is high time for states to cooperate, coordinate, and help each other to defeat this fatal pandemic first for saving the global economic and financial structure.
How to measure the political situation of a country to understand its impact on the country's economy and financial market.
I need some panel data with some variables. Because I have to prepare for class projects. If someone gives panel data, I will be thankful to you.
Hi everyone,
I have a daily, hourly, and weekly dataset of a stock chart that consists of date and price.
I would like to develop a program that takes some part of the daily dataset for example (for example 20 days) and finds similar charts in hourly, daily, weekly, etc datasets for me. What I mean by similar is the shape of the chart, not the prices. For example, we may have the same pattern in $10-$100 as the $800-$1500. I think it's about the computer vision field.
I actually look for fractals in the charts, self-similar data. Cause I believe what's going on now, somewhere happened before.
I hope I explained my purpose clearly.
Could anyone please recommend appropriate tools to use or any good introductory books/websites/tutorials?
Thank You
There are main categories of financial markets like stock markets, bond Markets, sukuk, .. Etc
Kindly, could you write what are all other categories of financial markets with the main references which discuss the details of financial markets or something if them
Thanks for your kind consideration
Regards
Ahmed
We are looking at a pandemic that will have consequences both in the short and medium and long term. In particular, we need to understand the reaction of financial markets to an event that affects the whole world and not individual countries, as has happened in past years.
📷
I use Spectral Kurtosis and Kurtogram to study the turbulence of financial markets. I would like your advice concerning the intuition behind Spectral Kurtosis and Kurtogram.
- Financial Crisis
- Kurtogram
- Spectral Kurtosis
It is required to update the project of the Financial Market of the country.
Sometime our education system is working as sensex or NIFTY in financial market. After some years a mixed model emerges and we blindly follow it and do experiments in education and after few years, the person (mix model)may be outdated and we a mob or crowd follow new one?????
What is the potential channel through which monetary policy affects the risk and uncertainty in the financial market?
Do the responses of financial market risk and uncertainty respond to monetary policy differently in different monetary policy regimes?
The financial markets have crashed assuming the worst possible impacts on world economies. Is this an overreaction? Are we going to see mass unemployment and several years to recovery?
Esteemed colleagues,
I am working on a new project related to financial frictions. Since financial frictions refer to when financial markets are imperfect evidenced by tighter credit constraints can "lending rate" or "interest spread" be used as proxies?
I will appreciate constructive feedback and suggestions.
Thanks.
Ngozi
Addressing climate change stimulated international financial organizations and institutions to provide the necessary financing for green financing that tries to counter severe climate change and try to adapt to it.
Anyone expert in bussines studies who can guide me that what is the best way to get started in financial market bussines and how could I educate myself and as biginner what would be your advise to me that how could I take initiative in stock market business.
There is a really strange phenomenon in Chinese stock markets. When the regulation institution decides to get some new companies listed (it is noteworthy that IPO has to get permission from Securities Regulatory Commission in China), the stock market drastic falls and the Chinese investors sell out their stocks crazily.
Some argue that more stocks listed means that more money is needed by the market, but the supply is constant in the short term. So the stock price falls. But I don't think it explains well what we observe.
In connection with the use of computerized, automated transaction systems, does the scale of the issue of the psychology of securities markets decrease?
Please reply
Best wishes
Dear Colleagues and Friends from RG,
The above discussion inspired me to formulate the following question:
What are the main determinants of research on behavioral reactions of investors on capital markets and consumer behavior on consumer goods markets?
On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that in recent years the importance and applications of economics and behavioral finance have been growing. Therefore, it is crucial to define the dominant research determinants regarding behavioral reactions of investors on capital markets and consumer behavior on consumer goods markets.
Below I have described the key determinants confirming the formulated research thesis. To the above discussion I would like to add the following conclusion formulated as a summary of my previous considerations on this topic: Determinants of research on behavioral reactions of investors on capital markets and consumer behavior on consumer goods markets.
Economics due to the social issues of many subjects and problems in this field of knowledge, which it deals with is classified in many science centers in the field of social sciences. Social issues related to the economic conditions of people's lives, social determinants of economic development of economic entities and states, social policies led by states, behavioral factors of changes in economic situations in individual markets, etc. constitute a significant part of issues that are studied and described in the field of economics. Therefore, economics, even if not all of the issues it deals with, however, in most of the studied economic and financial issues falls within the scope of social sciences. In recent years, the importance of research in the field of behavioral economics, behavioral finance, etc. has grown.
In recent years, there has been an increase in the importance of behavioral economics and finance, including an analysis of the determinants of media shaping consumer opinions regarding company brand recognition, product and service offerings, etc. by increasing the importance of online information services, including social media portals. The growing importance of financial market psychology, the growing significance of behavioral factors influencing investment decisions of individual investors operating on capital markets and consumers making purchasing decisions on markets of popular products and services.
Therefore, the key questions that need to be answered are: Are investors active in the securities markets more cautious in making investment decisions after the global financial crisis, or are they more thoroughly analyzing the investment risk of investing in capital markets? Did any of you conduct research aimed at determining possible changes in the significance of financial market psychology and behavioral economics in capital markets, including securities markets, after the global financial crisis of 2008? If research shows that the importance of financial market psychology and behavioral economics in capital markets is decreasing, what is this mainly determined by? Is it the result of post-crisis greater awareness of investment risk among investors, or also a change in the structure of the dominant segments of investors operating on capital markets, or is it also the result of an increase in the number of transactions carried out by computerized transaction systems?
Business and economics are connected or determined to a significant degree with psychology. Examples of the most often cited, described and researched are emotionally determined behavioral behaviors of both consumers in consumer product and service markets as well as stock market investors in capital markets, including securities markets, in addition also currency markets, etc. Issues of the influence of psychological factors on economics can be found also within the scope of marketing activity directed at potential consumers of certain products or services. Supported by intensively conducted advertising campaigns, the sale of certain types of products and services is particularly determined by psychological issues used in advertising campaigns, which increase the scale of appearance and fashion activities for specific types of products or services. Sometimes the effectiveness of advertising campaigns depends to a large extent on whether the information message contained in advertising spots acts on human emotions and thus generates smaller or larger revenues from the sale of specific products or services. In financial markets, on the other hand, the impact of psychology on investment decisions of individual investors can be significant. Periodically, in situations of increased speculation in capital markets, imbalances in securities markets, there is a period of investment euphoria, sheep's momentum, investing fashion and, as a consequence, a strong revaluation of securities valuation (bull market) and periods of strong stock market recession, during which there is fear of investing, panic, getting rid of already undervalued shares, bonds, derivatives, etc. (bear market). Bull market and bear market phases appear periodically, sometimes cyclically in succession. If in capital markets, including securities, the importance of emotions can be an important factor influencing the decisions of individual investors, then the issue of financial market psychology may be an important topic of scientific research. Another interesting research issue is the determination of the importance of increasing the automation of the process of placing stock exchange orders in connection with the use of automated transaction systems by investment banks. Therefore, in the context of the above issues, it may be important to verify the research thesis that the growing importance of automated IT transaction systems used for computer orders for the purchase and sale of securities may reduce the impact of financial market psychology. If it was possible to examine this correlation, then another research issue for which a research project could be launched would be to determine the impact of automated IT transaction systems used by investment banks on the issue of stabilizing the stock market situation, the period of recovery after the emergence of the stock market crash, etc.
What research methods are used to analyze the behavioral and pragmatic behavior of individual investors operating in financial markets, including capital and securities markets? In addition, in related issues it is also interesting to find the answer to the following question: What currently dominate research methods are used to analyze behavioral and pragmatic consumer behavior in specific markets? Are there methods for precisely measuring consumers' pragmatic attitudes? The key is to distinguish the determinants that shape consumer behavior in market conditions. In my opinion, a good method of collecting data for the needs of this type of analysis are survey research methods, which cover consumers of a specific, cross-sectional group, segment of citizens, with specific characteristics. Then statistical elaboration of the results of conducted research should provide analytical material for the formulation of specific assessments and characteristics of both behavioral and pragmatism of specific actions undertaken by a selected segment of participants in a specific market, e.g. consumers of specific types of products and services.
In addition, advertising of consumer products and services serves to increase the demand for the advertised offer, and thus significantly affects the increase in consumption and also indirectly to change the behavioral behavior of social behavior and also to increase consumerism. In developed and developing economies, advertising is largely responsible for the rise in consumerism, but it is not easy to investigate to determine precisely what quantitative dimension this impact is. In connection with the above, in recent years the importance of the issues of data sentiment analysis obtained from social media portals has been growing in Big Data systems. For many companies, social media portals such as Facebook, Tweeter and others are a source of data on shopping and behavioral preferences used by companies operating in various industries and sectors for the purposes of marketing activities.
In line with the above, in my opinion the importance and applications of economics and behavioral finance have been growing in recent years. The above considerations show that many determinants are currently operating that shape changes in behavioral responses of investors in capital markets and consumer behavior in consumer goods markets.
Do you agree with me on the above matter?
I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.
In view of the above, I am asking you the following questions:
- What research methods are used to analyze behavioral and pragmatic consumer behavior in specific markets?
- What research methods are used to analyze the behavioral and pragmatic behavior of individual investors operating on financial markets, including capital and securities markets?
- What are currently theories of the development of emotional intelligence and logical intelligence in the context of research conducted in the field of behavioral finance?
- What are the main determinants of research on behavioral reactions of investors on capital markets and consumer behavior on consumer goods markets?
- Do advertisements of consumer products and services increase consumption and increase consumption?
- Is the importance of psychology of financial markets and behavioral economics in securities markets decreasing after the global financial crisis?
- Is capital market behavioral psychology still very important for capital markets?
- After the global financial crisis of 2008, is the capital behavioral psychology of the behavior of investors operating on these markets still important in capital markets?
- Are the determinants of investor behavioral factors still strong in recent years on the world's largest stock exchanges, including psychology of financial markets in interpreting changes in stock market trends on these markets?
- After the global financial crisis, are investors operating in the securities markets more cautious in making investment decisions, or do they more thoroughly analyze the investment risk of investing in capital markets?
- Were studies previously conducted to determine possible changes in the significance of financial market psychology and behavioral economics in capital markets, including securities markets, after the global financial crisis of 2008?
- If research shows that the importance of financial market psychology and behavioral economics on capital markets is decreasing, what is this mainly determined by?
- Is it the result of post-crisis greater awareness of investment risk among investors, or also a change in the structure of the dominant segments of investors operating on capital markets, or is it also the result of an increase in the number of transactions carried out by computerized transaction systems?
- How are behavioral finances related to behavioral behavior of investors operating on the securities markets changing due to the increasing use of ICT and Industry 4.0 in the scope of development and increasing the share in concluded automatic transactions, computerized transaction systems used by banks and investment funds performing short-term transactions , speculative, lasting even fractions of a second but with the use of large funds, so large that they are inaccessible to the average individual investor?
- What are the dominant, model behavioral reactions of investors operating on the securities markets?
- To what extent do changes in the behavior of individual investors in securities markets correlate with periodically occurring in these markets overvaluation (bull market) and undervaluation (bear market) valuation of securities?
- Do strong correlations of changes in behavioral responses of individual investors, i.e. periodically overvaluing (bull market) and undervaluing (bear market) valuation of certain assets also apply to other financial, capital and other markets? (e.g. derivative markets, currency markets, real estate markets, etc.)
What do you think about this topic?
What is your opinion on this topic?
Please reply
I invite you to discussion
thank you very much
Best wishes
Dariusz Prokopowicz
Financial inclusion ... is a big concept ... that can give us a lot of indicators .... I think that indicator is linked to many variables
1- Financial stability
2 - The efficiency of financial markets
3. Sustainable development
Economic development
In addition to the determinants ........... waiting for your discussion
Do you prefer to run money in banks through deposit and get interest or invest money in financial markets through the available financial instruments?
are you interested in analysis of financial market? So let us know for you what is the best scientific method for capturing liquidity on financial market?
Why is the impact of financial institutions inclusion /access and efficiency is positive on Investment but the impact of financial markets inclusion/ access and efficiency is negative on Investment in many developing countries?
How can the level and importance of the psychology of financial markets be measured on the situation on the stock exchange market?
How to measure the level of positive emotions (euphoria of investing during the bull market) and / or negative (fear and panic of sales in the situation of collapse of the stock market, in the bear market situation) of individual investors?
What are the tools, measures that allow you to objectively measure the level of emotions among individual investors operating on the stock exchange market?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Hi,
Is any of you have a suggestion of a paper or a data set tracking the financialization of the economy (EU, US, or Canada) since 2008? Is there any evidence of the growing importance of financial markets and financialization of corporations since the Great Recession?
Thanks.
I have recently read a lot of papers that proceeds to comment on inefficiencies in financial markets purely based on empirical evidence derived from methodologies grounded on nonlinear serial dependence. For this matter, isn't non-linearity a stylised fact across financial assets? Why and how does evidence of non-linearity disprove EMH?
Given that there can be several other non-fundamental reasons for the presence of non-linearity in an asset series (such as imperfect markets, exogenous shocks, clustered information arrivals, bubble components, active speculation, geopolitical as well as political factors among others), is it fair to conclude that a particular market is inefficient based on such evidence?
More importantly, can a theory be disproved based on the examination of real world data that does not exactly mimic/reflect the underlying assumptions against which the theory is built upon?
It would be very helpful to all if you could suggest some supporting literature that could further stimulate this discussion along with your invaluable comments.
This question is based on a study investigating the influence of firm leverage on market performance in high intangible growth prospects.
The evolution of world economy is strongly conditioned by the financial system, and specially by the behaviour of the numerous and diverse financial markets (stocks, money market, forex, interbank, bonds, derivatives, commodities, etc.). For this reason, financial variables determine consumption, investment, foreign trade and public spending.
I propose this question, in which I would like to know if you agree or consider open some additional points of view of the economy that may condition new economic crises. Thank you.
I have to use "Merton Jump diffusion model" for estimating the price of options for my research work.
i am using VBA as a back-end program for MS-Excel.
I have calcualted all the variables required for the model except the two variables
1. Number of jumps per year and
2. % of the total volatility explained by the jumps.
how to estimate those two variables.
i read program manual, but no information is available about it.
can anybody help in in this regard
thanks in advance
