Stock Price Booms and Expected Capital Gains

Investors' subjective capital gains expectations are a key element explaining stock price fluctuations. Survey measures of these expectations display excessive optimism (pessimism) at market peaks (troughs). We formally reject the hypothesis that this is compatible with rational expectations. W...

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Bibliographic Details
Published in:The American economic review 2017-08, Vol.107 (8), p.2352-2408
Main Authors: Adam, Klaus, Marcet, Albert, Beutel, Johannes
Format: Article
Language:English
Subjects:
Asset pricing
Capital gains
Dividends
Economic booms
Economic expectations
Economic growth models
Economic models
Expectations
Investors
Mathematical growth
Optimism
Pessimism
Polls & surveys
Prices
Property
Rational expectations
Rationality
Ratios
Return on investment
Stock prices
Stocks
Subjectivity
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