Note: What I wrote down the stairs is just a quick sketch of possible/ apt reactions. This assignment was basically a collection of ten essays. So there is not really a right and defame answer. But there are answers that make sense and most that do not. The ones below are some that make sense.
1. On TV, a stellar financial analyst was being interviewed by a journalist (CNN I believe). Here is the conversation: give the stock-markets be split off if Bush wins?…
First, my gut-feeling is that political leaders may matter for individual stocks such as oil stocks but it does not really matter for stock-markets overall. [As a really rough proof, the stock-market rarely moves by much than 1% about election result announcement date]. Hence, I dont expect the S&P 500 to be very sensitive to who is in the house, a priori. Now total the data. The question is now: is the difference statistically and economically prodigious? Are there any outliers? This is particularly relevant because if a crash is random (like October 1987), then the president has no big businessman over it and it will appear that the president with bad peril is a bad president for stocks; which would be inappropriate.
Of course, this raises the issue of what causes a crash and we dont really have an answer but it is reasonable [although still debatable] to say that public constitution has a minor impact on a stock-market crash. In addition, the belief that the stock-markets are better-off at a lower place Republicans is not at comical with the piece of evidence presented above. If investors prefer investing in stocks under Republicans, maybe because they perceive the stock-market to be less risky [or the parsimony to be less uncertain, company profits to be more protected, shareholder interests to be more protected…], then they crave a lower risk premium. It is a classical fall away to think that if returns are high it means that the companies are better run. Returns are high either because prices...If you want to get a full essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment