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Negative bubbles: What happens after a crash
Author(s) -
Goetzmann William N.,
Kim Dasol
Publication year - 2018
Publication title -
european financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.311
H-Index - 64
eISSN - 1468-036X
pISSN - 1354-7798
DOI - 10.1111/eufm.12164
Subject(s) - crash , stock (firearms) , economics , monetary economics , stock market crash , survivorship curve , stock market , financial market , politics , financial economics , finance , geography , political science , biology , context (archaeology) , archaeology , cancer , computer science , law , genetics , programming language
We study crashes using data from 101 global stock markets from 1692 to 2015. Extremely large, annual stock market declines are typically followed by positive returns. This is not true for smaller declines. This pattern does not appear to be driven by institutional frictions, financial crises, macroeconomic shocks, political conflicts, or survivorship issues.