Equity Markets around the World in a Bubble ?. Stock market bubble - definiton A stock market bubble is a type of economic bubble taking place in stock.

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Presentation transcript:

Equity Markets around the World in a Bubble ?

Stock market bubble - definiton A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation.economic bubblestock marketsstock valuation Stock price/GDP is above historical level

Do the stock markets bubble exist?

Yes Stocks are sometimes sold for market price that is higher than their real value Countries which execute higher control over their economy and political system, are able to cover real situation on the markets

Example how the bubble looks like

No The factors influencing the stock makret stands outside the market Eg. The collapse of oil prices, rise of the US dollar

Conslusion: The fact, if the bubble exists, differs from country to country The impact of the stock market bubbles on the economy depends on the ratio of tradable value of the GDP Wisnu Widiyantoro, Pavlina Rucki