Stocks overvalued longer, more frequently than previously thought: Study

NEW YORK, May 4 (UPI) — Data scientists at Columbia University crunched the numbers on stock bubbles and the results aren’t pretty. According to their research, the top 3,500 stocks trading in the United States stock market featured an average of four bubbles between 2000 and 2013. Their findings, detailed in the journal Mathematics and Financial Economics, suggest stocks become overvalued more frequently than previously thought, and remain so for longer periods of time. “Our results add further evidence that financial markets are neither efficient nor rational,” Philip Protter, a statistics professor at Columbia and a member of the university’s Data Science Institute, said in a news release. Before Protter and his colleagues arrived at their results, they had to develop a reliable formula for determining when a stock was…


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