Question

Why do you think the turn-of-month effect has seemingly spread to more countries in the post-1987...

Why do you think the turn-of-month effect has seemingly spread to more countries in the post-1987 period?

Homework Answers

Answer #2

It is related to stock prices temporary increase in last few day and intial few days of month.9 October 1987 also known as Black Friday as stock market fall by 20% in a day in usa singapote by 45% and other countries also decline, due to crash in computer programming driven trading model and which follow a portfolio insurance strategy .

It's spread was mainly due to monetary policy intervention of different countries central bank im response and trying to increase market liquidity and to prevent debt default of various financial institutions.

answered by: anonymous
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