Impetus for future growth in the globalization of stock investments: an evidence from joint time series and chaos analyses

The central focus of this paper is to conduct an elaborate search for chaos in the national stock market index prices. We looked at 810 days of index prices by employing all the techniques discussed in the finance literature. The structures sorted out in this paper were calendar and non-calendar factors. We provide conclusive evidence for the presence of chaos in national stock index prices data. Most importantly, this provides a rational impetus for future growth in international portfolio investments in a highly integrated world. Furthermore, future exploration of the underlying structure confirmed by the presence of chaos may lead to the clarification of unexplained changes in national stock index prices