UK: what happens now?
Article Abstract:
The British economy remains in generally good condition, despite the effects of the stock market crash of Oct 1987. Stock market indicators suggest that market confidence has been neither restored nor cut back since the crash. The inadequacy of US budget deficit reduction plans and the declining value of the US dollar have added to economic uncertainty both in the US and among its trading partners. British firms with US operations or which make large exports for US markets are not performing very well in equity markets. It is suggested that the most important factor in industry and in equity markets will be psychological attitudes, particularly 'bearish' ones.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1988
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Where's your efficient market now?
Article Abstract:
Sudden and steep drops in stock share prices around the world have led some to question whether securities can be rationally priced, and whether the stock market is as efficient as is claimed. The argument that the market is irrational is based on the extent of its 1987 fall and on the failure of the market to reflect economic fundamentals. The market is driven by expectations of future returns; when the prospects for the future are suddenly or sharply reversed, the market's adjustment will be correspondingly sharp, as it was in Oct 1987.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1987
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