Why did the stock market recover as the economy suffered? Yale SOM’s Shyam Sunder points to the hundreds of billions of dollars injected into the economy by the Federal Reserve and other central banks.
According to preliminary research by Yale SOM’s Peter Schott and his co-authors, investors may be adjusting prices based on whether previous predictions of total infections seemed overly optimistic or pessimistic.
The stock markets are reeling as fear and uncertainty about the global pandemic grow. We asked Yale SOM’s William Goetzmann, whose research includes financial history, to put the volatility into historical perspective.
The giant China-based conglomerate Alibaba raised more than $13 billion in November in a stock offering on the Hong Kong Stock Exchange. We asked Yale SOM’s Heather Tookes and Matthew Spiegel, who have studied the performance of companies after IPOs, what their research suggests about Alibaba’s prospects and its next steps.
In an excerpt from his new book, Yale SOM’s Robert Shiller examines how the stock market rise of the 1920s, the crash of 1929, and the Great Depression that followed came to be seen as a tale of recklessness and divine punishment—and how that narrative still shapes our understanding of the stock market.