The Application of Game Theory and 52-Week High Momentum on Global Macro Strategy: A Case Study of Lockheed Martin

Abstract

Abstract In the wake of the global financial crisis of 2008 the international order has begun to change geopolitically In January 2012 the Pivot to Asia policy was first introduced by the United States and then intensive international relations culminated in the Sino-Japanese Diaoyutai Islands sovereignty dispute of September 2012 Like Reagan’s announcement of Star Wars Program to trigger an arms race between U S A and Russian in 1980s Obama’s Pivot to Asia Policy in 2012 has been sparked a new one between U S A China and their allies respectively in 21st century Welcome to the golden age of the Global Macro ---a superpowers’ policies-driven era This research on Lockheed Martin was included in my study plan proposed for entry to Graduate Institute of Finance National Cheng Kung University on 20 DEC 2012 Now Game Theory and the 52-Weekly High Momentum Strategy stand out as important methods for examining the forecasting ability of game theory time-varying interrelationship between the return and duration of momentum of Lockheed Martin in the sample periods The dissertation aims to help institutional investors deliver alpha and sovereignty wealth funds meet their strategical targets The study covers the periods from 20 January 1981 to 20 January 1984 for Reagan’s Star Wars Program; and 7 September 2012 to 4 September 2015 for Obama’s Pivot to Asia policy During the sample periods the study is characterized by the features below First of all without recourse to conventional financial report analysis and quantitative methods but rather only through the strategic analysis of game theory it was able to precisely engender predictable outcomes in advance Another is the return has continually outperformed the S & P 500 Index Finally because current major actors’ military competitions are intensifying the duration of momentum is stable and unabated Key words: Global Macro Strategy; Game Theory; 52-Weekly High Momentum Strategy

Date of Award	2016 Jul 4
Original language	English
Supervisor	Meng-Feng Yen (Supervisor)