Profiteering from the Dot-Com Bubble, Subprime Crisis and Asian Financial Crisis

Michael McAleer*, John Suen, Wing Keung WONG

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)


The paper explores the characteristics associated with the formation of bubbles that occurred in the Hong Kong stock market in 1997 and 2007, as well as the 2000 dot-com bubble of Nasdaq. It examines the profitability of technical analysis (TA) strategies generating buy and sell signals, with and without our proposed trading rules. The empirical results show that, by applying long and short strategies during the bubble formation and a short strategy after the bubble burst, it not only produces returns that are significantly greater than buy-and-hold strategies, but also produces greater wealth compared with TA strategies without trading rules. We conclude that these bubble detection signals help investors generate greater wealth from applying appropriate long and short moving average (MA) strategies.

Original languageEnglish
Pages (from-to)257-279
Number of pages23
JournalJapanese Economic Review
Issue number3
Publication statusPublished - 1 Sep 2016

Scopus Subject Areas

  • Economics and Econometrics


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