The mean error (ME) gives the average expectational
error and provides evidence of any systematic over- or under-prediction of inflation in the sample.
Convergence hinges on whether initially small expectational
errors are damped or magnified as the economy evolves.
Do not neglect the third piece of the Expectational
Analysis(R) pie -- fundamental analysis.
To determine the rational expectations solution for the standard Keynesian model that incorporates an IS curve (3), a Phillips curve (5), and the Fisher equation (6), we solve these three equations to produce an expectational
difference equation in the inflation rate,
The discount rate obtained in this manner is based on an equilibrium relationship (the Security Market Line, with beta expressed in terms of the pension claim's duration) and is expectational
As an alternative to historical estimates, the current paper derives estimates of k, and hence, implied values of rp, using publicly available expectational
The key to expectational
analysis is a wealth of either bullish or bearish investor sentiment that runs counter to the stock's technical performance.
com/powertoolsobs/ ) to seek out stocks that boast the foundation of an intriguing Expectational
Analysis(R) play; a strong technical trend against a backdrop of negative sentiment.
That kind of ongoing process would also be expected to involve a different expectational
climate from what seems to prevail today.
CINCINNATI -- In yesterday's edition of Options 101, we learned how investors can spot potential contrarian plays using the Schaeffer's Expectational
Analysis [R] approach.
Bernie Schaeffer's Expectational
Analysis(R) philosophy has proven that when pessimistic sentiment lingers on an outperforming stock, it typically has more upward potential.
It was noted that the Committee might have gained some leeway to maintain an unchanged policy without adverse expectational
effects in light of the relatively large policy tightening implemented just a few weeks ago and the publication of favorable price and wage data that probably had alleviated, at least temporarily, concerns about future inflation.