FORECASTING EQUITY INDEX VOLATILITY: EMPIRICAL EVIDENCE FROM JAPAN,UK AND USA DATA
Understanding and forecasting equity market volatility has become an essential focus for financial analysts, policymakers, and academic researchers. In this working paper are explained the predictive capabilities of non-linear models—ARCH, GARCH, and EGARCH—using weekly return data from Japan, the UK,…
Overview forecast of a 40-50% Market Cap Decline in MAG7 Stocks on the US Economy. Implications of declining saving rates
The “Magnificent Seven” (Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, and Tesla) have a combined market capitalization of approximately $15.76 trillion(Stock Analysis)(markets.businessinsider.com). These seven tech giants play a significant role in the overall health of the stock market and the US economy due to their substantial weighting in major indices (such as the S&P 500), their contribution to innovation, and their employment and tax contributions.
Understanding Stock Splits: Their Mechanics and the risks to Financial Stability and the Economy
Stock splits are a common corporate action wherein a company increases the number of its shares while proportionally reducing the stock price. The company’s market capitalization remains unchanged, but shareholders end up with more shares. For example, in a 2-for-1 stock split, every existing share is divided into two, and shareholders receive an additional share for each one they hold, while the price per share is halved.
Unveiling the Complex Tapestry of Stock Market Crashes: A Comprehensive Exploration
The history of financial markets is punctuated by episodes of euphoria and despair, with stock market crashes serving as ominous reminders of the inherent volatility and unpredictability of the global financial system. A stock market crash is a sudden, severe…