Inelastic Market Hypothesis Explains Market Volatility скачать в хорошем качестве

Inelastic Market Hypothesis Explains Market Volatility

The Inelastic Market Hypothesis explains the volatility in the stock market, also explains why stock market crashes are usually so sharp and fast. Plus, you might not believe it, but YOU are the reason behind stock market crashes as households, with their flows, drive the market. The Inelastic Market Hypothesis, developed by professor Gabaix and Kooijen, from Harvard and Booth respectively, shows how 30% of stock market fluctuations can be explained by flows. This confirms the thesis that you and me, drive the markets and also explains the risks as our selling drives crashes. Thanks to the market's in-elasticity, $1 dollar invested, increases the value of the market by $5 because there simply isn't enough supply to make markets efficient. The opposite also holds. Inelastic Market Hypothesis content 0:00 Inelastic Market Hypothesis 3:56 Inelastic Market Nature 6:10 You Make Stocks Crash 9:10 Importance 11:28 Investing Conclusion 14:27 Market Can Double The four pillars of the Inelastic Market Hypothesis are that: institutional funds have rigid constrains and can't really do much hedge funds own only 5% of the market, thus can't balance the remaining 95% risk isn't transferred among sectors markets are less efficient on the macro level than on the micro The Inelastic Market Hypothesis is important as it explains market volatility, why markets crash but also as it helps understand the impact of buybacks, government intervention and other factors impacting the stock market. As for investing, imagine what $1 invested does with low volume stocks or shallow markets. videos mentioned: Very Good Food Stock Analysis -    • Very Good Food Stock Analysis - FAKE MEAT,...   SSRN article on the Inelastic Market Hypothesis - https://papers.ssrn.com/sol3/papers.c... My passion is to look for low risk high reward investment opportunities with a long-term business owning like focus. I apply my accounting skills and investing experience in order to find the best businesses to own that offer the possibility to lead me towards my financial goals. If you are a sophisticated investor looking for in depth, independent stock analyses and investing ideas, here is my STOCK MARKET RESEARCH PLATFORM (business research and risk reward analysis, stocks to buy from my covered stocks list, my portfolio): https://sven-carlin-research-platform... Are you an investor that is just starting? Sign up for the FREE Stock Market Investing Course - a comprehensive guide to investing discussing all that matters: https://sven-carlin-research-platform... I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t Check my website to hear more about me, read my analyses and about OUR charity. (YouTube ad money is donated) www.svencarlin.com Listen to Modern Value Investing Podcast: https://svencarlin.com/podcasts/ #inelasticmarkethypothesis #Efficientmarket #stockmarket