Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Response to COVID-19: Assessment of the Bubbles in U.S. Stock Market

Authors
Hua Bai1, , Jing He2, , Ruorong Liu3, , Jing Sun4, *, , Di Wu5,
1Springside Chestnut Hill Academy, Philadelphia, 19118, United States
2The Experimental High School Attached to Beijing Normal University, Beijing, 100000, China
3School of Social Science, University of California, Irvine, California, 92697, United States
4Merrill College, University of California, Santa Cruz, California, 95064, United States
5Accounting School, Tianjin University of Finance and Economics, Tianjin, 300202, China

These authors contributed equally

*Corresponding author. Email: jsun101@ucsc.edu
Corresponding Author
Jing Sun
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.300How to use a DOI?
Keywords
Covid-19; U.S. Stock market; Price bubble
Abstract

At present, COVID-19 pandemic has profound influence on every aspect of human society. Due to economic globalization, the pandemic exert negative impact on real economy of all countries, and inevitably lead to higher unemployment rate. International stock market also fluctuate frequently. However, uncommon phenomenon has been noticed in the U.S. stock market. After 3 days’ market crash in March, 2020, the US stock has kept trading higher. Therefore, this research identifies the current stock market’s opportunities and risks under the background of the global pandemic situation. Some investors contend that in the stock market there lies great opportunities, owing to the negative effects of periodicity and pandemic, while others claim that it is the fake boom that releases wrong signals for investors due to the Fed’s policy. Through the research on GDP and employment rate under pandemic, FED’s intervention under pandemic and further impacts, the impact of real estate on the stock market, and stock index, this study aims to explore whether there lies a potential stock market bubble under its current prosper appearance. The results indicate that the U.S. is suffering from a high unemployment rate, potential great GDP loss, stock market bubbles, high inflation rate, the risk of overvaluing, etc. This study reveals that a bubble exists in the U.S. stock market. Therefore, the investors need to recognize the potential risks and conduct a reasonable portfolio.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.300How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Hua Bai
AU  - Jing He
AU  - Ruorong Liu
AU  - Jing Sun
AU  - Di Wu
PY  - 2022
DA  - 2022/03/26
TI  - Response to COVID-19: Assessment of the Bubbles in U.S. Stock Market
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1823
EP  - 1829
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.300
DO  - https://doi.org/10.2991/aebmr.k.220307.300
ID  - Bai2022
ER  -