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Cyclical Nature of Financial Crises and Their Impact on the Stock Market

  • J. A. KonoplevaEmail author
  • O. N. Pakova
  • S. V. Zenchenko
Conference paper
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 138)

Abstract

The article substantiates the role of the stock market as a necessary and significant element of a country’s economy, which might be, also massively influenced by financial crises. The goal of the research is to study the influence of the financial crisis cycles on the stock market and its financial instruments. The logical presentation claimed its priority rather than the crises advance description, with respect to their unity. Theoretical aspects of financial crises are considered as well, including the crises classification in the context of the budget crisis, banking, monetary circulation, currency and stock crisis. In terms of the classical four-phase economic cycle model, the scientific and practical expediency of crisis research is specifically emphasized. In addition, the crucial role of scientific and technical innovations for the cycle changes is established. The stock crisis stages and their genesis are defined as well. The financial crisis impact on the Russian economy is carefully examined as well as the vulnerability factors are brought out. On top of that, the long-term socio-economic development scenarios are outlined and presented to be chosen from. Additionally, effective investment portfolio recommendations and its valid use in times of crisis are given; this in its turn will be able to reduce risks and neutralize the crisis negative consequences.

Keywords

Economic cycle Crisis Stock market bubble Development scenarios Financial instrument Investment portfolio 

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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • J. A. Konopleva
    • 1
    Email author
  • O. N. Pakova
    • 1
  • S. V. Zenchenko
    • 1
  1. 1.North-Caucasus Federal UniversityStavropolRussia

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