Issue 4, 2005

Dorofeev E. A. Entering the Capital Asset Markets: the Optimal Moment Choice

The up-to-date financial literature favors the theoretical approach that the trading analysis backs the choice of the convenient moment for changing the market position of an asset’s investor (the problem solution laying in the field of continuous comparing the asset return with that for alternative instruments). The paper improves the author’s 2000 model for the situation when the risky asset returns, on average, much exceed the riskless alternatives, — just the case for the Russian stock market since 2000–2001. Then the author analyses the major Russian stocks trade timing efficiency for the last 4 years.

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