Middle East Countries’ Stock Markets under Contrarian and Momentum Strategies

This research aims to investigate the stock markets of Middle Eastern countries in the framework of momentum and reverse strategy. Potential foreign investors who can invest directly in the Middle East's stock market need to investigate the recent history of these stock markets and understand the risks associated with high returns. Therefore, in this survey, we examined the stock market in the Middle Eastern countries from January 1997 to December 2010 and analyzed the performance under various momentum and opposite strategy.

In the past eight years I have managed two portfolios in the public market, I did a few reverse bets. The first of these opposing gambars issued "All in" stocks in mid-2009. Not all reverse bets were done nicely, but many bets are available. This is a precious learning experience. So here are some stories about reverse calls and my lessons at Apple, Netflix, Facebook, Amazon, and Tesla. First of all, I would like to say that the stock / company that the reverse investor does not include or exclude investment is a problem. If people think that the potential of stock is significantly greater than consensus, opposing gambling may also happen. This difference may be due to the misunderstanding of most market participants. Therefore, the opposite view is not against the current state of the company, not against the current view of the market.

Opponents' strategy cites "to defeat the market" and indicates that investors are doing the opposite of other investors. In other words, when someone else buys or sells, he buys or sells. Their logic is focused on the concept they buy when others sell stocks. When other investors realize that they are overreacting to bad news, the stock price rebounds to its basic value. Clear example is Royal Dutch and Shell stock price. It forms an alliance that binds profits on a 60 to 40 basis while maintaining an independent and independent entity. EMH reflects the price method, but the market deviates from the 60-40 equality of the two shares. When compared with Shell, the Royal Premium in the Netherlands is 8% to 10%, and if you are affected by the crisis, the parity will only expand.

Shortening the encryption currency is one of the most difficult investment strategies. It relies on a perfect understanding of the investor's market and can of course use a highly complex strategy that will reverse (or doubt) and become investor for a certain period of time. In short, do so at your own risk and make sure you are receiving as much education as possible. The shortfall is not simply a matter of technology. If there is enough skepticism, the technology will not grow and the price will fall anyway. In order to become a good short seller, you must know that most people do not know. The higher the value of encryption, the higher the value of short selling. It is a difficult part to predict exactly when it will occur.