Found 2 article(s) for author 'economic bubbles'

This Market Has All The Signs Of A Bubble

This Market Has All The Signs Of A Bubble. Andrei Shleifer, September 24, 2018, Audio, “Andrei Shleifer, Professor of Economics at Harvard University, discusses his new book, “A Crisis of Beliefs: Investor Psychology and Financial Fragility,” and whether we are prepared for another financial crisis. Hosted by Pimm Fox and Lisa Abramowicz.Link


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Bubbles for Fama

Bubbles for Fama. Robin Greenwood, Andrei Shleifer, November 2016, Paper, “We evaluate Eugene Fama’s claim that stock prices do not exhibit price bubbles. Based on US industry returns 1926-2014 and international sector returns 1986-2014, we present four findings: (1) Fama is correct in that a sharp price increase of an industry portfolio does not, on average, predict unusually low returns going forward; (2) such sharp price increases do predict a substantially heightened probability of a crash; (3) attributes of the price run-up, including volatility, issuance, book-to-market ratio, market P/E ratio and the price path of the run-up can all help forecast an eventual crash; and (4) some of these characteristics can help investors earn superior returns by timing the bubble. Results hold similarly in US and international samples.Link

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