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answer the question, each question need to be answer in one page to two pages.this is about asia pacific markets .

March 24, 2016 | Author: | Posted in business, mathematics and economics

1 . One of the main factors that drove the US stock markets to the high values they achieved at the end of the 1990s was obviously the economic growth that the US enjoyed during both Clinton presidential terms . With policies that encouraged the development of businesses and even a slogan that resumed the economic orientation of the Clinton administration ( it ‘s the economy , stupid , the 1990s were a time when the US was the economic superpower of the world . With the collapse of the Soviet Union , the American citizens and foreign investors became more [banner_entry_middle]

confident in the American stock market

Another factor worth considering has its roots in the early 1980s : very cheap stock . Indeed , at that point , many shares sold for very low values and , even if the general public was disinterested in the stock market as a form of investment , still the low price provided an interesting incentive

In terms of macroeconomic factors that influenced the bull market , we can mention reasonably low interest rates that discouraged saving and encouraged stock investment , as well as constantly improving company figures that drove the people ‘s confidence to hire levels

On the other hand , such bull markets are often associated with new discoveries , new perspectives on the future etc . In this particular case , it was the Internet and the new economy that played an important role in the stimulation of the stock market . The ease of communication that the Internet brought about , corroborated with the belief that productivity and efficiency in the workplace would bring surging profits made people believe that the new industry and the new economy would consolidate economic performance . Again , increasing confidence turned people to the stock market for profitable investments

A final note on the fact that bull markets are often generated by the investors who keep believing in the profitability of their investment and who keep buying , thus rising prices . It is probably at this point that the bull market turns into a bubble market , with the crash consequences we have witnessed in different periods of time throughout history

So , following those described in the previous paragraphs , we can note that the 1990s bull market had both bull market characteristics and its own bubbles . From the point of view of a stable and constantly growing economy that encouraged business and entrepreneurship and following many companies ‘ fundamentals , this period was certainly a bull market . On the other hand , following the speculation that brought about the crash in 2000 and the unreal behaviour of the investors , despite the figures that showed signs of a bubble , this period has its `bubble ‘ – like characteristics

2 . According to different sources , the initial mandate of the Federal Reserve , upon its creation in 1913 , as awarded by the Congress , was to to provide and ensure stability , safety , and flexibility in the national monetary and financial system . However , the actual role of the Federal Reserve has change to include all measures it can take to ensure the well being of the national… [banner_entry_footer]

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