An Important Predictor of Market Bubbles, Crashes and Corrections

We propose a predictor of market bubbles, crashes and corrections that is based on the relationship between the following two ratios: (Market value of the firm compared to its intrinsic value, MV/IV) and the (return on capital of the firm versus its cost of capital, R/C*). We apply the model to evaluate the state of the market actually and to detect a forthcoming market bubble, crash or correction

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Year of publication:	2017
Authors:	Saint-Pierre, Jacques
Publisher:	[2017]: [S.l.] : SSRN
Subject:	Spekulationsblase \| Bubbles \| Finanzkrise \| Financial crisis \| Theorie \| Theory

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Extent:	1 Online-Ressource (3 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 6, 2017 erstellt
Other identifiers:	10.2139/ssrn.2981745 [DOI]
Classification:	B41 - Economic Methodology ; C53 - Forecasting and Other Model Applications ; E17 - Forecasting and Simulation ; E27 - Forecasting and Simulation ; E37 - Forecasting and Simulation ; E44 - Financial Markets and the Macroeconomy ; G14 - Information and Market Efficiency; Event Studies ; G17 - Financial Forecasting
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012954789