| Issue: | 2020 №2 (70) |
| Section: | |
| UDK: | 338 |
| DOI: | https://doi.org/10.33271/ev/70.097 |
| Article language: | Ukrainian |
| Pages: | 97-104 |
| Title: | Features of macro-economic indicators of overbuying and reselling of the stock market |
| Author: | Trigubchenko A. V., National University of Life and Environmental Sciences of Ukraine |
| Annotation: | Research methodology. The study was based on an analysis of American experience of using exchange indicators as indicators that allow for constant monitoring of the stock market and forecasting the future. Using structural analysis, we examined the main components of the Fear and Greed Index. The general and special method made it possible to single out the advantages and disadvantages of this index from the existing indicators in this area. Results. The article raises the problem of analyzing the current economic condition of the country through the continuous monitoring of its economic dynamics. The importance of the correct interpretation and practical use of a system of macroeconomic and exchange indicators as benchmarks under unstable market conditions is shown. The content is examined and the detailed description of the market sentiment indicator, which is called the “Fear and Greed Index” and which was proposed by CNN, a world-famous authoritative information resource, is provided. Since based on the analysis of this index, forecasts can be made regarding future price fluctuations of assets, it can be considered the most effective indicator of the current state of the stock market and future changes. The main structural components of this index were analyzed and evaluated, namely: momentum for stocks, strength of the stock market, breadth of the stock market, volatility in the stock market, demand for risky assets, demand for safe assets, CALL and PUT option. Novelty. The advantages and disadvantages of the «Fear and Greed Index» indicator have been identified, and recommendations have been developed for creating favorable conditions for its application in practice. Practical value. Understanding the essence and structure of the «Fear and Greed Index», as well as its prognostic capabilities, will allow more efficient use of this indicator both in the diagnosis of the macroeconomic state of the country and in the activities of individual business structures for the current assessment and forecasting of the future. |
| Keywords: | Stock market, Economy, Stock exchange, Trade, Volatility, Stocks, Bonds, Options, Futures |
| File of the article: | EV20202_097-104.pdf |
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