Questions and Topics We Can Help You To Answer:
Paper Instructions:

Class Film: Akira (CW) (Ōtomo Katsuhiro, 1988, 124 mins)

Class Film: Laputa: Castle in the Sky (IL)(Miyazaki Hayao, 1986, 126 mins)

1) In a sense, all cinema is animation because it puts images in a sequence. Using examples from the films we watched this week, discuss how the multi-planar structure to the animated image makes possible new modes of representation different from live-action cinema. Think about how storytelling changes and how the visual space is different in animated works.



2) Discuss the difference between digital animation (modeling three-dimensional space, i.e. Toy Story) differs from multi-planar animation (modeling two-dimensional space) in films such as Akira or Laputa. What differences do you notice in the kinds of movement and the sense of the ‘camera’/perspective between the two. Use specific examples. 



3) What is unique about the worldview of the films of Hayao Miyazaki/Studio Ghibli in contrast to the films of Disney/Pixar? You can mention both visual characteristics of the animation itself as well as elements such as character, setting, and narrative.

Questions and Topics We Can Help You To Answer:
Paper Instructions:

Discuss what you think are the most important issues the film makes. To what extent did they shape what America is today. What are your feeling, arguments, critiques? Do you believe this is a largely forgotten issue in American history? Why?

Questions and Topics We Can Help You To Answer:
Paper Instructions:

Write a short analytical piece on a film (or films) that we have watched in class, applying concepts and methods learned to date in the course. 

Should provide a close reading of one of the films we have watched (The Age of Shadows, Spring on the Peninsula, A Stray Bullet), utilizing one of the following approaches taken from the Corrigan reading: film history; national cinema; genre; auteur; formalism; ideology.

The paper may draw on critical readings and concepts covered in class, and may propose connections with the relevant socio-historical context.  The paper should be centered on an arguable thesis, taking a specific position on an issue or topic.  As Corrigan writes, "The focus of the essay is far more specific than that of a review, since the writer hopes to reveal subtleties or complexities that might have escaped viewers on a first or even second viewing" (10).  Plot summary should be kept to a minimum—you may expect that the reader of your essay is familiar with the film under discussion.  The use of secondary readings is entirely permissible but not required.  If outside sources are used, please use either MLA or Chicago citation style.

Questions and Topics We Can Help You To Answer:
Paper Instructions:

2 different short essay responses based on reading and these questions:
1) According to the authors of this essay, what are the principle characteristics of avant-garde film during the period 1960-1975? 
2) What characterizes the New Hollywood in terms of both visual style and thematic concerns? 

Questions and Topics We Can Help You To Answer:
Paper Instructions:

This course topic is: "NATIVE American COMMUNICATION & PERF"  The FILM REVIEW ESSAY ASSIGNMENT:  PAPER 1 or 2 will be a FILM REVIEW ESSAY of 1800 words. You will choose either: "The Exiles"  OR "This May Be the Last Time" .  Notes  you take should be on:
Acting
Cinematography
Story
Symbolic and impressionistic techniques – how are feelings and effects produced?
Take notes during  and immediately following the screening.

Pick a political, historical, cultural or social event that is represented in this film represents, and do extra research on it. You must cite TWO sources other than the film.
The research should be about the film’s historical event, social context or the extended/related background that contextualizes the story. Your research should not be just an IMDB biography of the filmmaker, although information about the filmmaker can provide you with additional information (in addition to the other two sources).  The sources you use can be on line.

Analytic Film Review Essay: We will go over the expectations in class.

Week 9 – 5 Broken Cameras
Answer all of these questions. You will need to use the assigned readings and your own thoughts.
Introduction videos to Israel-Palestine
https://www.youtube.com/watch?v=Y58njT2oXfE&sns=em

https://www.youtube.com/watch?v=_ZY8m0cm1oY
1.    What did you learn? What is your reaction to the movie?


2.    What connections can you make with other movies we have watched this semester or other things you have come across in school/life?


3.    The Israeli-Palestinian Conflict has been going on for nearly 70 years now, with efforts towards a peace agreement for over 20 years. From what you read in the readings, what do you think is the biggest obstacle to peace? Is it Palestinian or Israeli rejectionism that is it to blame? What do you think?


4.    What are your thoughts about the protests seen in the documentary? Do you think it is worth it (it’s just land and olive trees) to go out and protest every week? Or is it pointless? What do you think?


5.    One of the points of the documentary was to show the young boys growing up in this type of environment. Do you think that this means the conflict will always exist for all generations to come? Is there hope to break this cycle of violence? When does it end?

6.    Do a brief search on news about Israel & Palestine and tell me what you find. What is going on with this issue today?

Questions and Topics We Can Help You To Answer:
Paper Instructions:

Movie name: 
"E.T. the Extra-Terrestrial”

a. The underscoring for this film can be described as having a magical, childlike mood. Pick a
specific scene where you feel the underscoring best represented this mood.
1. Briefly describe the dramatic action for this scene. [complete sentences]
2. What musical sounds and aspects of music (i.e. dynamics, tempo, melody, etc.)
helped to create this magical, childlike mood?
b. Overall, do you feel that the underscoring for this film complements the dramatic action? Why
or why not?

Questions and Topics We Can Help You To Answer:
Paper Instructions:

The purpose of this assignment is to give you an opportunity to explore the psychotherapeutic relationship in great depth as it is portrayed on screen. For this assignment please write a 5-7 page (not including the title page and references page) paper.  In this paper, please analyze a character’s illness and treatment from the perspective of a psychotherapist.

Formatting Reminder: You are expected to format your paper according to APA formatting guidelines. Please see the APA resources folder in our classroom for additional resources and tools for help in preparing your paper. Be sure to cite your sources accordingly, to avoid plagiarism in your formal written assignments.

You are required to include discussion of:

(a) The character’s diagnosis in terms of the DSM-IV
(b) A brief discussion of the apparent etiology of the character’s symptoms, and
(c) An in-depth analysis of the treatment prescribed for the character in terms of theoretical perspective: psychoanalytic, client-centered, gestalt, and behavior therapy.

Which perspective(s) is(are) being represented in the film? Does the treatment seem to be effective? What are the advantages and disadvantages of this approach? What, if any, alternative approach would the student recommend?

Here is a list of films you can choose from:

David and Lisa (1962)
One Flew Over the Cuckoo’s Next (1975)
Ordinary People (1980)
Sybil (1977)
Girl, Interrupted (1999)
Awakenings (1990) 

America’s ride of destruction

The film ‘The Four Horsemen’ by Ross Ashcroft offers a different perspective explaining the vices that exist in society and the destruction of the American dream. The documentary is divided into four segments where each section resembles the issues that are attributed to the four horsemen of the apocalypse. The four horsemen, as described in the bible include conquest, war, famine, and plague and are represented in the documentary where the empires represent conquest; banking systems represent famine; terrorism represents war, and resources represent the plague. 

           The documentary attributes the decline of the American empire to the rapacious financial system that exists in the United States where organizations or empires and people in power want to have more money, resources, and opportunities even at the expense of others. Despite the growth and success enjoyed by the American empire, the documentary suggests that, like other empires throughout history, the power and control are likely to end once its lifecycle is complete (Ashcroft, 2012). In accordance with the Rational Choice Theory, the growth and sustenance of the empire heavily depend on the choices that people make. The decision to engage in unethical and sometimes criminal activities is a matter of choice rather than force. The decisions made by the empires as discussed in the documentary suggest that the greed from those in power is the major contributor to the decay of the American empire. 

           The Labeling theory can help to better understand how organized crime and terrorism are subsidized by the United States government for profit and control. The United States benefits from the sale of weapons and is therefore promotes or influences the existence of war in different countries as a way to increase demand for war equipment (Ashcroft, 2012). In addition, the existence of war allows the United States to maintain its presence in different countries and further gives them controlling interests in countries that have marketable resources like oil in Iraq. Those that fight to end the United States' control in their countries are labeled as terrorists and are presented as fighting on religious terms rather than the desire to break away from their oppressors. The superpowers also give foreign aid to ensure that the countries are dependent on them which goes against the foundations the American empire was originally built on. 

           The third horseman of the apocalypse is represented by the banking systems in the United States and how their greed has created a burden for American citizens that make it difficult to sustain the American empire. When the housing crisis hit America, it exposed a crack in the banking system and how mortgages and taxation has been used to exploit the American citizens. The self-control theory suggests that people engage in deviant or risky behavior because they lack the self-control to uphold good ethics and moral conduct (Ashcroft, 2012). Bankers and politicians, therefore, lack self-control and often engage in actions that seek to generate more wealth even if it is at the expense of the ordinary citizen. The heavy taxes imposed on individuals make it difficult for them to benefit from their hard work. The documentary proposes a change where production seeks to promote growth and success for individuals instead of acquiring more debt to be repaid through taxation. 

           The final horseman exposes how destroying the earth’s resources has contributed to the destruction of the American Empire. Instead of seeking out ways to improve the quality of life, most of the activities that organizations and individuals engage in seek to promote growth and increase profits. The activities that organizations engage in consuming a lot of resources and d little to enhance environmental sustainability or make life better for the general population. In accordance with strain theory, the existence of competition pushes organizations to seek out better ways to meet the demand that exists in the market (Ashcroft, 2012). Their actions are however based on the desire to make more profits and the damage caused has greatly contributed to the decline of the American empire as presented in the documentary. 

Reference

Ashcroft R, (2012) “Four Horsemen” film

Critical Film Analysis

 Sorry to Bother You Film Analysis

Introduction

A deeper understanding of a movie or a film requires an individual to analyze that particular video's content critically. In this discussion, we will conduct a film analysis concerning the "Sorry to Bother You" movie. The analysis will focus on assessing fundamental theories and concepts involved in popular cultural and sociological perspectives. Our assumption states that specific themes and theories emerge, affect, and are responsible for the social structure and change in a particular society in any given community. Therefore, our goal is to assess the film media beyond its surface-level meaning to depict the associated themes. The following questions give a starting point of the theories employed in this video: Would you give up your freedom for a job, food, and shelter for life? Would you run a workforce of slaves if the price was right?

Sorry to Bother You is a satirical comedy about code-switching and exploitative capitalism. Most importantly, it takes on capitalistic culture and how we usually ignore it. Therefore, in this study, we will focus on capitalism and racism (Critical Race Theory). Therefore, a clear explanation of the above themes will help us understand this film's essence and ass to our understanding of social problems. Besides, the theories will open our minds to unlimited thinking towards the issues the society encounters daily. It will play an essential role in developing techniques to solve or change the problems and understanding the problems in a new way or different perspective. Therefore, from what we learned from the class, the theories we learned will be critically used to analyze the film "Sorry to Bother You."

Overview of the Film

This movie is a comedy-type film in Oakland, where the main character discovers a magical key to professional success. Cassius Green, the central actor, gets a telemarketing job and finds the commission-paid job that causes someone to lose hope and enthusiasm. He is just a mere black man selling predominantly to the white people over the phone. However, everything changes when a veteran advises him to use his "white voice" and its attitude to make him more attractive and appealing to customers. Cassius follows the veteran's advice, and with a bizarrely high-pitched voice accent, he becomes successful.

 Moreover, his colleagues form unions to help them improve their miserable and unprofitable businesses. Cassius is promoted to work as a "Power Caller," selling the most morally despicable but lucrative products and services. However, his involvement with abhorrent business weakens his connection between him and his girlfriend and his colleagues. Things take a different lead as his conscience arises, finds himself amid his boss' strange world of condescending, intolerant decadence, and his frightening plans to create the perfect supportive workforce with the help of Cassius.

Moreover, this movie has raised themes such as capitalism, greed, racial discrimination, and slavery. This film is trying to air out that black individuals can give out all they have for life and engage in bad businesses provided that the price is right. In this film, Cassius, however, succeeds in his abhorrent business after his promotion. Ultimately, Sorry to bother you film helps us understand that capitalism, race, slavery, and greed have severely affected blacks' activities and lifestyle patterns in Western countries. In a real-life situation, the film exposes how society is. For instance, when Cassius becomes a "power caller," his relationship with his girlfriend and friends is negatively affected. Generally, we clearly show how capitalism and racism can affect individuals' lives in real contemporary society.

Sorry to Bother You and Critical Race Theory

Recent events in the United States have prominently surfaced issues of race and ethnicity, a rise in hate crimes targeting black individuals (Ogbonnaya, Smith & Toyama, 2020).  Racial bias is one of the main themes evident in this film. The main character, Cassius, originates from a poor background consisting of minorities. Cassius is black, and he needs to adopt his "white voice" for his promotion. The aspect of code-switching depicted in the movie as the character uses the white voice brings out the aspect of racism. Code-switching refers to the act of altering how individuals express themselves based on the audience, in this case, referring to blacks and whites. Therefore, this film has helped us understand that code-switching has emerged as a racial disclosure in the United States of America. How is this evident in the film? Soon after Cassius Green, the main character, begins his new job as a telemarketer, the business fails to make a single sale.

However, a black co-worker offers to give him a radical suggestion that dramatically brings success in the business. The co-worker tells him that if he wants to make some money in that region, he must use his "white voice." Cassius's new white voice that he copied from his father becomes the most significant asset in his business's success. What does code-switching help us understand in this film? The linguistic act of code-switching is complex. It is a social mobility tool, and for the black people, it is a tool for survival since the whites cannot buy goods and services after hearing the African voices on the phone calls. Racism has affected blacks' lives, forcing them to use code-switching as a defense against linguistic discrimination. So what should be done? In general, black individuals should love their natural forms of expression rather than criticizing code-switching.

Sorry to Bother You and Capitalism

Capitalism refers to an economy with a system in which the private investors own and controls the property according to personal interests, freely demand and supply, and setting prices in the market, thereby serving society (Sarwat & Ahmed 2015). In Sorry to Bother You film, capitalist society has been depicted between the whites and the blacks, with the main motive focusing on making profits.  For instance, the co-worker tells Cassius if he wants to make some money, he should use his adopted "white voice," which worked for him favorably. Moreover, the film explores capitalism at different levels how surprisingly it manages to drive society.

Cassius starts to work as a mere telemarketer. He becomes more successful after using his "white voice," gets promoted, and life becomes more manageable. However, the company he works for uses a capitalist system just like all other companies, searching for profits. The company is only interested in making profits without considering what Cassius goes through. In the process, he even loses his girlfriend and colleagues. Cassius comes to his senses and begins to question his moral standing. He declares that he can no longer continue supporting their actions of turning human beings into equisapiens.

Conclusion

Generally, critical analysis of "Sorry to Bother You" film has played a role in understanding how capitalism and critical race theories are evident and influence social change. Besides, the theories help in understanding what society faces. This plays a role in dealing with issues in a new and different dimension as these are things that happen in a real-life environment. From the arguments above, we can conclude that racism is expressed in the film by Africans for their survival through "white voice." Furthermore, critical race theory is an approach that seeks to understand and combat race inequity in society (Gillborn & Ladson-Billings, 2020). Therefore it plays a hugely important role, which members of the majority population rarely recognize. It explores the social structuring of racism changing, complex and subtle, mainly benefiting the white people.

In comparison, capitalism has been used by the whites for their selfish interests. Apparently, the great virtue of s free market is that it does not care what racism is; it only cares whether you can produce a commodity you want to buy (Friedman, 2020). Hence it is an effective system of identifying individuals who hate each other, helping them deal with one another and help one another. Therefore themes and theories that exist in society today have both negative and positive intentions.

References

Friedman, M. (2020). Capitalism and freedom. University of Chicago press.

Gillborn, D., & Ladson-Billings, G. (2020). Critical race theory. SAGE Publications Limited.

Ogbonnaya-Ogburu, I. F., Smith, A. D., To, A., & Toyama, K. (2020, April). Critical race theory for HCI. In Proceedings of the 2020 CHI Conference on Human Factors in Computing Systems (pp. 1-16).

Sarwat, J. & Ahmed, SM. (2015). "What is Capitalism?" Retrieved from; https://www.imf.org/external/pubs/ft/fandd/2015/06/basics.htm

Sorry to Bother You Film Link; https://cas.ryerson.ca/login?service=https%3a%2f%2flogin.ezproxy.lib.ryerson.ca%2flogin%3fqurl%3dezp.2aHR0cHM6Ly9tZWRpYTMuY3JpdGVyaW9ucGljLmNvbS9odGJpbi93d2Zvcm0vMDA2P1Q9QUw1Mjk0MDI-

Experimental film techniques

Introduction

 The creative process of any individual relies on time and information. Time dictates the style and application of the skills needed to come up with unique facts and content. Even though experimental film techniques cover various practices, the experimental film is usually characterized by linear narrative absenteeism, the usage of different conceptualizing mechanisms, painting, swift editing- allochronic sonic practices, or even the lack of theme songs. The objective is normally placing the viewers within an active and thoughtful atmosphere while engaging the film. Most experimental films are against mainstream traditions (Kokaram, 2013, p267). Over time to time experts have shared specifics on the nature of experimental films. By definition, experimental films are not easily defined due to the abstract guidelines and extensive categories that dictate definition mannerisms.  On one side, it refers to going against film norm narratives and textual movies while on the other side, it has to retain its aesthetic value and auditory art nature. Most of the time, the inherent capability of the experimental films can be mundane or plain. Furthermore, storyline and documentary movies use some of the artistic features to a certain level to focus on generating improved narrative authenticity. Nevertheless, in experimental films, the degree to which each film element is incorporated or deployed in order to trigger or display emotions and ideology is immeasurable.

Features and Techniques of an Experimental Film

 As stated earlier, an experimental film tries out with some filmmaking elemental procedures such as visual editing or auditory, flick mechanisms, and even production modes. Since experimental film experiments with new concepts and untried mechanisms, they may succeed or flop (Ohanian, and Phillips, 2013, p134). As it is well known, experiments naturally fail or succeed hence are shaky. Based on known concepts, experimental films can both be exceptional and bad at the same time. In order to clarify this statement, an experimental film can be coherent, natural, and easy flowing. In simpler terms, the usual experimental film features are not sufficient enough to qualify a film under the experimental category.

            In terms of practice, the exploration of experimental film’s ability to influence light, motion, space, and period which in turn articulates the movie maker's imaginative perspective. Normally, experimental films are connected to extensive trends and rehearse in fine arts. Besides, there are various kinds of experimental films. However, despite this diversity, the distinctive nature of experimental films is defined against different features, and this assists in defining the importance of this genre. Just like any other motion picture types, film production is a combined effort, nevertheless, in an experimental film, the filmmaker perceives, shoots and oversees the entire film making process with the use of a small crew (Ferrara, 2013,p117). Often, some filmmakers can play more than one role such as the distribution of the end product motion picture. It is vital to note that experimental films are created separately from industry economics with the filmmaker footing the production entire bill. Unlike contemporary film features, experimental films are precise i.e. thirty minutes and below lengthwise. This is due to the size of the budget and other allocations. Even though sometimes the filmmakers make short movies for artistic purposes so as to capture a fleeting scene. The production of experimental films in strips helps in the reproduction and retaining content. Thus, experimental filmmakers are normally known for integrating new concepts in filmmaking mechanisms. For instance, a combination of computer-generated imagery and other forms of graphics influences the making of an experimental film. As noted in an experimental film features give a rough idea of the manner in which these films are to be made different from the usual movie narratives.

            In the literature field, evaluating experimental filmmakers normally apply some techniques based on the project at hand. While producing this kind of film, the producer risks introducing a separate narrative from the main storyline. This way, one of the main advantages of experimental films is dictating the language and the main theme of the entire narrative. It is not a must for an experimental filmmaker to isolate his or her ideas based on something unusual or unique in an attempt to go against the current mainstream norms. Thus, the underpinning ideologies dictating the prescribed modernizations associated with experimental filmmaking and scripting are relevant to community traditions and other applicable means. In an attempt to construct experimental film as a motion picture category, the existing assortment of experimental films adopt both visibility and formal artistic perspectives like any other movie hence facilitating the enlargement and objectivity of the entire film category (Tomaric, 2011,p78). Moreover, the principle of filmmaking is integrating realistic occurrences with artistic application and illusions. The subtle balance between spontaneous and thoughtful artistic design brings out the fundamental features of experimental films. Subsequently, further extensions include slow motions, negative imagery, logical editing which in turn influence the altered pictures from actual reality to the cinematic experience. Experimental films normally start as amateurs and then mature into commercial mainstream films. Sometimes they can venture into academic placements.

Experimental Film Approaches

 Most of the experimental films specifically relate to fields such as painting, pirouetting, music, poetry, and even investigation and improvement of creative practical properties. Even though some experimental films are dispersed via typical systems such as marketable studios, most of them support themselves all along from production to distribution. It is a known fact that cinematic language changed over time due to the adoption of new filmmaking mechanisms and approaches. For example, the jump cut technique was first introduced as a common experimental filmmaking technique (Alvarado, 2008, p131). Supplementary techniques such as Dolly Zoom were later advanced into acceptable features that could improve the quality of the entire filmmaking process.  The evolution of these techniques led to the visionary auteurs. 

The concept of visionary auteurs relies on the fact that the director is the central key in comprehending the artistic elements of the entire film. Therefore instead of engaging a group of people, the director is the only consulting agent during the filmmaking process. In the present society, an average movie lover is highly knowledgeable in matters concerning filmmaking. Any movie lover knows the difference between a motionless shot and a tracing shot (Piccirillo, 2011, p219). Even if the filmmaker uses a wide-angle camera or telephoto close-up. Therefore, auteur concepts are one of the most reliable ways of making experimental films.

 Apart from the auteur concept, the track-in technique is used to express a character’s power or stature. This filmmaking mechanism efficiently integrates two or more shooting styles thus bringing into perspective the deliverance of an authoritative message. While executing this technique, the camera moves away or toward a certain character. For example, in a scene where seven people are at a dinner table, the filmmaker narrows down into one character as one conversation leads to another and the central character unveils the intentions (Tomaric, 2011, p145). Similarly, a tilt-up within a certain scene informs on the mannerisms of a certain character or even objective. If the filmmaker fails to narrow down on any character then the intentions might be different and accurately noted from a viewer’s perspective hence tilt from a downward trajectory makes the character feel more authoritative.

            One of the most common techniques associated with experimental filmmaking is minor off-speed. During the application of these techniques, the filmmaker or director has to come up with a clever way of inventing slow motions in order to capitalize on the quality of capturing the moment. Some instances require slow-motion pictures for the sake of yielding amazing outcomes. However, these instances are less than imagined (Ohanian, and Phillips, 2013, p163). Thus, most of the time experimental filmmakers try to establish the scenery and the message instead of directing applying these techniques. Most directors tend to over crank some shots in order to slow down the moment and bring out the message and critical elements of experimental film making.

 In summary, experimental filmmaking does not adhere to mainstream norms. Hence, the budgetary allocations for experimental films are negligible. Sometimes, these types of films may take a personal or general trajectory depending on the main narrative of the writers. The main objective of an experimental film is to combine filmmaking techniques such as auteur concepts so to come up with one central theme. Through the deconstruction technique, the audience can get a chance to interpret the perspectives of the filmmakers and even come up with a sold criticism for some of the scenes within the film.

References

Alvarado, R.G., 2008. Analysis of Filmmaking Techniques For Architectural Animations. Metu Journal of the Faculty of Architecture, 25(2).

Ferrara, S., 2013. Steadicam: Techniques and aesthetics. CRC Press.

Kokaram, A.C., 2013. Motion picture restoration: digital algorithms for artefact suppression in degraded motion picture film and video. Springer Science & Business Media.

Ohanian, T. and Phillips, N., 2013. Digital filmmaking: the changing art and craft of making motion pictures. CRC Press.

Piccirillo, R.A., 2011. The Technological Evolution of Filmmaking and its Relation to Quality in Cinema. Inquiries Journal, 3(08).

Tomaric, J.J., 2011. Filmmaking: direct your movie from script to screen using proven Hollywood techniques. Taylor & Francis.

Discussion 1

            The question discusses on the role of the central bank as a financial institution tasked with exclusive rights over supply of money and credit for a country or economic bloc. It is responsible for regulating financial institutions and creating the overall macroeconomic monetary policy. A good number of economist are of the opinion that central banks should burst bubbles in the stock market before they balloon causing damage to the overall economy such as in the burst of the dot com bubble. They believe monetary policy can be used to prick a bubble before they burst.

            The central banks can use the Gordon Growth Model (GGM) to determine the true value of a stock pegged on future expected dividends growing at a constant rate. For example, if given a dividend per share payable annually and assuming constant growth in perpetuity, the solution for the intrinsic value is given by the formula:

Where: p is the current price of the stock, g the constant expectation of growth, r constant rate of return, and D₁ the value of next year’s dividend (Cecchetti et al, 2001). However, the model can only apply for stable companies that exhibit steady growth in their dividends per share.

            Central banks have traditionally used monetary policies to control inflation and as tool to react following the burst of a bubble. However, following successive crises, they have learnt that some costs associated with bursting of a bubble can be difficult to manage. Although, economists who believe monetary policy should be used to brick bubbles are the minority, the central bank can use GCM to find the intrinsic value of stocks to know the interest rate hikes required to burst them. Hence, they can, for example, effectively impose capital surcharges on the trading of some assets. By knowing the intrinsic value of a stock, the central banks can thereby avoid making flawed decisions.

Discussion 2

            If I read in the Wall Street Journal that the “Smart Money” expects a fall in price of stocks, I would not act and sell all my stocks because this is information in the public domain. The information will already be reflected in the valuation of stock prices, thus no need to sell (Baker & Ricciardi, 2014). There is no benefit of offloading the shares because the optimal forecasted returns from stock will be equal to the equilibrium return.

            Stock price forecasting is the first stage to fundamental analysis and is usually concerned with the historical valuation. But, investors are concerned with future valuation and dividend yield. It is better to utilize forecasting techniques to make investment decisions rather than information available in the public domain. Some of the forecasting techniques an investor can use to make investment decision include: anticipatory surveys and barometric approach. It is vital to carry out industry-wide analysis because ultimately the investor invests in one or more company securities. The information will already have been factored in the valuation of the stock, therefore no need to act on it.

            There are indicators the investor can use to peg his or her investment decisions rather than information in the public domain. The indicators include leading indicators such as change in prices, money supply, unemployment rates, and consumer expectations. The investors can also utilize coincidental indicators and lagging indicators to affect their investment decisions. Ultimately, the overall performance of a portfolio will depend on acting on concrete information and diversification.

References

Baker, H. K., & Ricciardi, V. (2014). Investor behavior: The psychology of financial planning and investing.  

Cecchetti, S. G., International Center for Monetary and Banking Studies (Geneva), & Centre for Economic Policy Research (Great Britain). (2001). Asset prices and Central Bank policy. Geneva: ICMB.