Is US system a mega Ponzi scheme?

Recently I think about the idea of my Professor, Tom Nguyen, of whether US is a mega Ponzi scheme. The main argument is: US almost always pays old debts with new debts (and an increase in debt ceiling), moreover, default is not an option toward US’s debts. I did keep …

Explore

June 2011 – Awaiting signal: Trading volume

For Vietnam economy, I especially care about growth and inflation.  The government has a strong tendency for growth over the last and next decade.  Besides, Vietnam is a frontier market (Vietnam is not an emerging market yet, a frontier market is smaller and more isolated than an emerging market) – …

Explore

An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [6]

CHAPTER V CONCLUSION Long-Term Capital Management was probably one of the most typical convergences between academic world and wealth management industry. The fund based its strategy on an Option Pricing model of Myron Scholes and Robert C. Merton, who shared the 1997 Nobel Memorial Prize in Economic Sciences, and effectively …

Explore

An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [5]

CHAPTER IV ANALYSIS OF RESULTS AND DISCUSSION This chapter answers directly to the questions of relations between P/E ratios and Market Capitalization to anomaly returns. The empirical results also examine the P/E Effect, Size Effect, and the correlation between Market Capitalization and P/E ratios that are proven to be meaningful …

Explore

An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [4]

CHAPTER III STUDY DESIGN AND METHODOLOGY The design of this study has gone through numerous parts with different ideas in different periods. The final results reflected the expansion of the research designs from its most initial idea. This chapter discusses about the design, forming structure, and decisions in choosing factors …

Explore

An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [3]

CHAPTER II LITERATURE REVIEW It is a long continuously evolving history of academic financial world, which divided into numerous different schools and development paths. This section attempts to give a bird’s-eye-view to the evolving history of Price Earnings findings, Market Capitalization studies and their family issues which finally lead to …

Explore

An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [2]

CHAPTER I INTRODUCTION “The ancient Sumerians attempted to divine meaning from examining the entrails of dead animals. We examine the behavior of residuals that affect the earnings/price (E/P) ratio, and use these residuals to predict future market returns.” Donna Dudney, Benjamas Jirasakuldech, & Thomas Zorn – 2008 1. Background Context …

Explore

An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [1]

A note from May 16th, 2012: This is my graduating thesis at International University – Vietnam National University in Summer 2010.  Through out the study, I found that there are correlations between Price-earnings (P/E) ratio, Size factor, and combination of the two toward a better stock value appreciation (attributed to …

Explore