StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

Stock Market Bubbles, Investing in Stock Markets in Different Countries - Coursework Example

Comments (0) Cite this document
Summary
The paper "Stock Market Bubbles, Investing in Stock Markets in Different Countries" discusses that investment in stock markets involves many uncertainties, predictions and emotional judgment. I think that my winning strategy will work and will be suitable for everyone now and in the future. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Stock Market Bubbles, Investing in Stock Markets in Different Countries
Read TextPreview

Extract of sample "Stock Market Bubbles, Investing in Stock Markets in Different Countries"

Download file to see previous pages Warren Buffet, Jim Salter and Benjamin Graham are legends in the world of investment. Were they smart enough to have established a winning strategy? Or was it pure luck? Or perhaps it was a mixture of both. Is there a winning strategy for the stock market, r is it just a gamble? And if there is one, is it practical and why would I think that this strategy will work for 10, 20, 30, 40 years or even more than that? Well, these are the questions that I will try to answer.
I believe that a winning strategy for investing in the stock markets is not impossible, yet it is not that easy. A large number of studies have tried to find ways to outperform the stock market, showing that there were some good strategies. However, these strategies were exploited and therefore, vanished.
In this essay, I will try to describe a winning strategy which I really believe in and will use in the near future when I have the money. My winning strategy comes from important ideas of the behavioural finance and will be based on stock market bubbles. However, in order to get the most of the bubbles, I will use three strategies when buying stock shares at the beginning of a market bubble. These strategies are first, investing in deferent stock markets within different countries. Secondly, combining the best of active and passive investing strategies. And finally, investing in both long-term and short-term by using Contrarian and Momentum strategies. Moreover, in this essay, I will draw some final conclusions about this winning strategy.
A market bubble can be defined as trading at prices higher than the fundamental value of an asset. In my winning strategy, I will use market bubbles in my favour and try to get the most out of the bubbles. The main technique of my strategy is to buy at the beginning of the bubble and sell at the peak of it. However, defining the beginning and the peak of a bubble is not an easy task. In fact, it is extremely difficult and almost impossible to determine. Nevertheless, my strategy will be flexible regarding this issue. The strategy suggests that buying at any time at the end of a bubble or in the beginning of a new one will be acceptable. The same level of flexibility will apply when selling. This means that the selling process can occur anywhere between after the peak of the bubble or before the peak of a bubble. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Stock Market Bubbles, Investing in Stock Markets in Different Coursework, n.d.)
Stock Market Bubbles, Investing in Stock Markets in Different Coursework. Retrieved from https://studentshare.org/marketing/1723491-a-winning-stock-market-investment-strategy
(Stock Market Bubbles, Investing in Stock Markets in Different Coursework)
Stock Market Bubbles, Investing in Stock Markets in Different Coursework. https://studentshare.org/marketing/1723491-a-winning-stock-market-investment-strategy.
“Stock Market Bubbles, Investing in Stock Markets in Different Coursework”. https://studentshare.org/marketing/1723491-a-winning-stock-market-investment-strategy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Stock Market Bubbles, Investing in Stock Markets in Different Countries

Stock Market

I chose these stocks as a foundation for a diversified portfolio and would like to build positions in each company for long-term holdings targeting 5-10 years. With the exception of Yongye, these stocks are all industry leaders and corporate entities with large asset bases and established business/consumer products. I chose these stocks because I believe that they should not only outperform the market but also limit downside risk to preserve capital. Due to the requirements of the assignment, I chose my entry points for the stock purchases late in order to capitalize on building my position through purchasing at a lower initial price. Over the course of the investment cycle, from 5/27/2011 to 6/2/2011, the rate of return of each...
4 Pages(1000 words)Essay

Desribe bahrain stock market

Bahrain Stock Market Table of Contents Question 3 Question 2 4 Reference 6 Question Describe the securities traded in the Bahrain Stock Market and the Regulator supervision over the financial market. The Stock exchange of Bahrain is known as Bahrain Bourse which is the only nationalized stock exchange in Kingdom of Bahrain. This stock exchange was established in 1987 and used to be known as Bahrain Stock Exchange. However, it started its first trading with 29 listed companies in June 1989. During 1999, automated trading system (ATS) was introduced and investors started the transaction electronically. In order to bring better regulation in the capital market, the regulation authority was transferred to Central Bank of Bahrain (CBB)...
2 Pages(500 words)Essay

Stock Market

... Stock market summary essay Introduction This essay seeks to relay to the reader a comprehensive summary of a stock market case. The case involves an investor who has $1 million and seeks to invest in various stocks of his choice. The essay covers how the investor should invest the above amount, what reasons the investor has for choosing the stocks and the manner of investment. Also included in this essay is the detailed but precise analysis of the stock selected by the investor. The essay present analysis of the company whose stock has been purchased by looking at the historic performance of the company based on stock prices and the risk rates to which any prospective investor must pay attention. The essay concludes by indicating...
2 Pages(500 words)Essay

Stock market

... Stock Markets The stock market is one of the largest financial markets in the world. Companies and s in different countries sell their stock to get money to run their companies towards specific goals and objectives. The public buy the stocks and the money goes to the institution that has floated the stocks and benefit through the fluctuations of the stock. The stock market can be very profitable but can also lead to losses. The stock market is very profitable creating a lot of interest to many people and though it may result in losses, there is a lot of benefit to the institutions selling their stocks, the individual that buy it and the governments of the various countries, making it one of the most popular earners. The Stock Market...
3 Pages(750 words)Essay

Stock Market Advice

...STOCK MARKET Since 1802, stocks have returned an annual average of about 7% after inflation while US treasury bonds have returned about 3%.'' ---James Glassman (author of Dow 36000) in Stocks are still the best bet,' The Guardian, May 26, 2003 For the equity markets overall, returns of about 5 percent to 7 percent annually above inflation. This range has been the same for long-term investor for over 100 years and, I suspect, will be the same for many years to come.'' ---Scott Evans (Executive Vice President, CREF Investments) in Stock Investing: Take the Long-Term View,' TIAA-CREF Participant, May 2003. Investing in the stock market calls for and requires a certain degree of experience and expertise. It is no place for amateurs...
2 Pages(500 words)Essay

Stock market

Gross Domestic Product is the total market value of all the final goods and services produced within a nation's borders in a given time period. Each goods and services produced and brought in the market have a price. The price of the total output is called as GDP. It can be measured by either cumulating all the income earned in the economy or all the spending in the economy and both measures should roughly equate to the same total. GDP is the basic measure of an economy's size. With the GDP used as a key indicator of economic activity and future economic prospects, any significant change in the GDP, either up or down, can have a major effect on stock market investors' sentiment. If investors believe that the economy is improving,...
10 Pages(2500 words)Essay

Stock and Commodity Markets

With globalisation, MNCs began to explore the markets outside there domestic grounds. Stock and commodities market too are being made attractive by respective governments, which is also resulting in wealth creation for the citizens and companies alike. If used judiciously, 'Stock and commodity trading' greatly helps in tapping resources for developmental projects, welfare schemes and other such nation building exercises. In order to leverage the economies of scale at different locations, such companies try to set up some of their operations at different locations. Moreover, with the advancement in ICT, global distances have tended to become smaller while the world is gradually being seen as a global village. Bracken (2004) underl...
5 Pages(1250 words)Essay

Stock Market

..., there was a reform on the rule of insider trading. Exchequer’s chancellor made the announcement regarding the rule as well as the centralisation of its enforcement authority in the FSA (Financial Services Administration) of UK. The Act giving such powers to the FSA was the “Financial Services and Markets Act of 2000. However, the FSA had not made any actions regarding the usage of price sensitive information by insiders by year 2004. (Salinger, 2004 p 431) FSA is a company which was established in the year 1997 with an aim of regulating firms in the U.K’s stock markets. It was formerly the Securities and Investments Board. Due to the transfer of the obligation of supervision of banks it was given the name Financial Services Authority...
5 Pages(1250 words)Essay

Finance- Global Stock Markets

The Dow Jones low point was USD10,608 and its high point was USD 11,439 a fluctuation of only USD 831, or slightly less than 1%.
The change from the first point (September 20) to the last date charted (November 22) was even lower. The Israeli stock exchange rose from USD 34,361 to USD 35, 348, an increase of USD 987. At the same time the Dow Jones rose from USD 10,608 to USD 11,083.75, an increase of only USD 475.75.
This means that if an individual had invested USD 100,000 across the board in each stock exchange at the end of the period their Israeli investment would be worth USD 104,597.90 while their Dow Jones investment would have increased to USD 104, 484.80. Over a period of less than three months this is not an inco...
4 Pages(1000 words)Essay

Stock Market Investing

... Stocks investing: Coca Cola and Exxon Mobil Despite a stock price is a well-known index for a company, not the companies with highest stock prices are worth of investing in the first place. There are many much more important factors like a positive dynamic in companies’ income, dividends companies provide for their shareholders etc. However, even when looking for a company with “best results”, the business is still risky due to many different economic, political, geographical and other factors easy to miss. Among three pairs of stocks, Coca Cola and Exxon Mobil seems most worth of investing with a view of their stock performances, dividends, and businesses they are in. This first pair of stocks belongs to companies involved in consumer...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic Stock Market Bubbles, Investing in Stock Markets in Different Countries for FREE!

Contact Us