[R-SIG-Finance] LPPL model for bubble burst forcasting

[Wind]

Sorry that I forgot including the first line of the code:
library(quantmod)

So the replicable codes as following:

library(quantmod)
hsi<-read.csv("http://32xiang.appspot.com/static/hsi-1970.csv",header=TRUE,stringsAsFactors=FALSE)
pr<-hsi$close

plot(pr,type="l",log="y")
grid()

ti<-index(pr)
ti2<-index(pr)^2

lines(lm(pr~ti+ti2)$fit,col="red")
lines(lm(pr~ti)$fit,col="blue")
lines(lm(pr~ti2)$fit,col="pink")




On Fri, Jul 17, 2009 at 3:12 PM, Wind<windspeedo99 at gmail.com> wrote:
> There is a chart of Heng Seng index  in page 24 of Prof. Sornette's paper:
> ## Financial Bubbles, Real Estate bubbles, Derivative Bubbles, and the
> Financial and Economic Crisis
> ## http://arxiv.org/abs/0905.0220
> The picture has also been attached as .hong kong.jpg
>
> The y axis of the chart is log-axis.  And there is a straight line in
> the chart.  "This is indeed the long-term behavior of this market, as
> shown by the best linear fit represented by the solid straight line,
> corresponding to an average constant growth rate of 13.8% per year."
> The following codes could not plot the same straight line.  I wonder
> how could plot the straight best fit line  in the log plot.
>
>
> ## Financial Bubbles, Real Estate bubbles, Derivative Bubbles, and the
> Financial and Economic Crisis
> ## http://arxiv.org/abs/0905.0220
> ## chart in Page 24
>
> hsi<-read.csv("http://32xiang.appspot.com/static/hsi-1970.csv",header=TRUE,stringsAsFactors=FALSE)
> pr<-hsi$close
>
> plot(pr,type="l",log="y")
> grid()
>
> ti<-index(pr)
> ti2<-index(pr)^2
>
> lines(lm(pr~ti+ti2)$fit,col="red")
> lines(lm(pr~ti)$fit,col="blue")
> lines(lm(pr~ti2)$fit,col="pink")
>
> Thanks in advance.
>
> wind
>