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Estimating the level of cash invested in financial markets

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  • Andersen, Jørgen Vitting

Abstract

Long-term trends of financial markets are considered as a growth phenomenon, with a steady influx of money needed to ensure a sustainable growth. A study is made of the impact of money supply, dividends and interest rates, on the growth of a market. A method to estimate the level of investment of cash into stocks is introduced, thereby eventually also identifying periods when stock markets are likely to have topped.

Suggested Citation

  • Andersen, Jørgen Vitting, 2004. "Estimating the level of cash invested in financial markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 168-173.
    • Handle: RePEc:eee:phsmap:v:344:y:2004:i:1:p:168-173
    DOI: 10.1016/j.physa.2004.06.109
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    References listed on IDEAS

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    1. Mehra, Rajnish & Prescott, Edward C., 1985. "The equity premium: A puzzle," Journal of Monetary Economics, Elsevier, vol. 15(2), pages 145-161, March.
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    Cited by:

    1. Goutam Dutta & Pankaj Jha & Arnab Kumar Laha & Neeraj Mohan, 2006. "Artificial Neural Network Models for Forecasting Stock Price Index in the Bombay Stock Exchange," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 5(3), pages 283-295, December.

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