Long-Term Contrarian Profits in the Middle East Market Indices
Research Journal of Finance and Accounting, Vol. 6, No. 16, 2015
10 Pages Posted: 2 Nov 2015
Date Written: July 30, 2015
This paper examines whether there is an existence of a long-term contrarian profits at the Middle East (ME) market indices. This paper shows strong evidence for the long-term contrarian strategy in the Middle East indices. The result of this study demonstrates that the long-term contrarian profits for the Middle East markets can’t be explained by two-factor model. In spite of whether winners are smaller or larger than losers, there are long-term abnormal profits. Finally, the findings in this paper suggest that the long-term contrarian profits may be stronger and more enveloping than is usually understood.
Keywords: long-term contrarian, Middle East (ME), market indices, two-factor model.
JEL Classification: G10
Suggested Citation: Suggested Citation