How to predict stock market bubble in real-time
Date Time How to predict stock market bubble in real-time A new method for identifying financial bubbles could help policymakers avert catatrophes like the burst of the 2007 housing bubble in the US. It is also applicable to traders, as it garners over 3 percent extra profit compared to a ‘buy and hold’ share investment strategy. S&P 500 index (in red) and its bubble interval estimates (in blue, for various liquidation dates) over 1996-2015. Bubbles were positive and economically significant in the late 1990’s, during 2006-2007 (prior to the GFC), and after mid-2014. Did you he...
Source: miragenews.com