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US Equity Market after the Great Recession: is It the New Normal?

Student: Salov Dmitrii

Supervisor: Leonid M. Grigoryev

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Bachelor)

Year of Graduation: 2017

The events that took place during the last years of the previous decade played a very important role in the different spheres of life not only in the USA, but in the whole world. The year of 2008 marks the beginning of the biggest financial crisis in the world’s history, that can only be compared with the Great Depression in 1929. Despite the fact that this crisis was a consequence of various prerequisites that have been shattering economic stability of the United States. Shortening the cause-effect chain we should note that it resulted in the equity market collapse. The disturbances in consumer crediting, automobile and raw material industries have become side-factors, and that is generally called «Dominoes Effect» that brought the whole world economy into recession. Many analysts ask themselves a question, taking into assumption the fact that economic agents are now going to act rationally after the retribution for their opportunism earlier: for how long are the markets going to grow? The author reformulated the question, stating it as a basis in this paper: can the situation on the equity market be called a new development vector, considering the previously mentioned circumstances? The theoretical significance of the paper lies in the redevelopment of current crisis-related and decision-making postulates that are also related to equity markets. The practical significance consists in the development of the analytical general concept in the sphere of financial crises and the current situation on the equity markets.

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