**Comparison of Selected Market Indicators During the Dot-Com Bubble Dot-Com Bubble**

**Comparison of Selected Market Indicators During the** 

DOI: 10.5772/intechopen.71381

Wladimir Schubert, Beáta Gavurová, Viliam Kováč and Martin Užík Viliam Kováč and Martin Užík Additional information is available at the end of the chapter

Wladimir Schubert, Beáta Gavurová,

Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.71381

#### **Abstract**

[9] Jegadeesh N. Evidence of predictable behavior of security returns. The Journal of Finance.

[10] DeBont WFM, Thaler R. Does the stock market overreact? The Journal of Finance. 1985;

[11] Singleton KJ, Hansen LP. Generalized instrumental variables estimation of nonlinear

[12] Singleton KJ, Hansen LP. Stochastic consumption, risk aversion, and the temporal behav-

[13] Parker JA, Julliard C. Consumption risk and the cross-section of expected returns. Journal

[14] Campbell JY, Cochrane JH. Explaining the poor performance of consumption-based asset pricing models. The Journal of Finance. 2000;55:2863-2878. DOI: 10.1111/0022-1082.00310

[15] Fama EF, French KR. The cross-section of expected stock returns. The Journal of Finance.

[16] Fama EF, French KR. Common risk factors in the returns on stocks and bonds. Journal of

[17] Novy-Marx R. The other side of value: The gross profitability premium. Journal of

[18] Aharoni G, Grundy B, Zeng Q. Stock returns and the Miller Modigliani valuation formula: Revisiting the Fama French analysis. Journal of Financial Economics. 2013;110(2):

[19] Fama EF, French KR. A 5F-FF asset pricing model. Journal of Financial Economics.

[21] Fama EF, French KR. International tests of a 5F-FF asset pricing model. Journal of Finan-

[22] Sundqvist T. Tests of a Fama-French 5F-FF asset pricing model in the Nordic stock markets [thesis]. Helsinki: Hanken School of Economics; 2017. p. 82 Available from:

[23] Lakonishok J, Schleifer A, Vishny RW. Contrarian investment, extrapolation and risk. The

[24] Gibbons MR, Ross SA, Shanken J. A test of the efficiency of a given portfolio. Econometrica.

cial Economics. 2016;123(3):441-463. DOI: 10.1111/j.1540-6261.2008.01368

rational expectations models. Econometrica. 1982;50:1269-1286

ior of asset returns. Journal of Political Economy. 1983;91:249-265

of Political Economy. 2005;113:185-222. DOI: 10.1086/426042

1990;45(3):881-898

92 Financial Management from an Emerging Market Perspective

1992;47(2):427-465

347-357

Financial Economics. 1993;33:3-56

Financial Economics. 2013;108(1):1-28

Journal of Finance. 1994;49:1541-1578

1989;57:1121-1152

2015;116(1):1-22. DOI: 10.1016/j.jfineco.2014.10.010

[20] Fama EF, French KR. Choosing Factors. Working paper; 2016

https://helda.helsinki.fi/dhanken/handle/123456789/167972

40(3):793-805

Since the outbreak of the recent financial crisis in 2007, central banks around the world have lowered interest rates while stock markets soared. On the example of North America, Europe, and Asia and in particular the United States, Germany, and China, the situation as of December 2015 is compared on the basis of economic theory and selected key performance indicators to the United States dot-com bubble in the nineties years of the twentieth century. Literature review offers a complex general view on the issue of market bubbles with a historical review of the situation in 2007 and 2008. The only indication of a bubble can be found in the China Securities Index 300, more specifically in the technology sector. The further aim of the paper is related to analyse and compare returns of the explored indices among the regions and the sectors. On a broader level, the study finds that even though there are similarities, the current rise in indices does not qualify for an asset price bubble. Conclusion sums all the observed findings on both the levels – regional and national. Also, it offers suggestions for discussion about the situation on the markets after the financial crisis.

**Keywords:** market, market bubble, dot-com bubble, financial crisis, market index
