Date of Award
Thesis Professor Department
Economics and Finance
William J. Trainor, Douglas Dotterweich
This study investigates whether the Buffett indicator can be used to make investment decisions in China. The investigation has two approaches. First, this study determines the scaling relationship between the Buffett Indicator and the GDP in China. Previous research and findings in this research regarding the scaling relationship can help international investors when comparing China with a different country as potential investment opportunities. Second, this study also examines whether the Buffett Indicator, the P/E ratio and composite models including the Buffett Indicator can be used as tools for international investors in predicting the Shanghai Index and making investment decisions for the Chinese stock market. The analysis is based on Chinese data from the World Bank, the National Bureau of Statistics of China, the Federal Reserve and the Yahoo Finance. This study finds that there is a sublinear relationship between the Buffett indicator and GDP in China and that the composite models which include the Buffett Indicator perform better to forecast the stock market in China than other indicators.
East Tennessee State University
Honors Thesis - Open Access
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Gao, Ruixue, "How Does the Buffett Indicator Work in China?" (2020). Undergraduate Honors Theses. Paper 543. https://dc.etsu.edu/honors/543
Copyright by the authors.