Building Skyscrapers Forecasts Lowers Stock Market Returns, says Research

May 27, 2011

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  • Studied U.S. building construction and stock market data for 1871 through 2009
  • In the three to five years after the construction of a record-breaking new skyscraper began, per annum stock market returns are around 10 percentage points lower than in other years.”
  • The predictive ability is significant and relatively stable.
  • It exceeds that of alternatives such as the prevailing historical mean, predictions based on dividend ratios, and recently suggested combination forecasts.

Source : CXO Advisory , SSRN

Further Reading : China goes big with building of skyscrapers – USA Today

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China’s Skyscraper Building Plans

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