Influences on Stock Market

Influences on the Stock Market: An Examination of the Effect of stinting Variables on the S&P 500 By Nathan Taulbee I. INTRODUCTION ts the deliverance stupid! This slogan from Bill Clintons 1992 Presidential campaign acknowl edges the importance of the U.S. economy in American politics. This slogan might also resonate loudly on Wall Street and among investors across the world. In many shipway the performance of the economy influences the success of the line of reasoning food market and depravity versa. This study will examine the impact that various scotch factors have on the stock market. Specifically, it will ask the question, How do interest rates, real GDP, and the fisherman Effect impact the S&P 500?. In addition, this study will measure out the impact of these economic factors on various industries including a utilities, transportation, financial, and technology index. The results of this study will help investors understand just how primary(prenominal) these economic variables are in influencing both the overall market and major industries. The following sections of this paper further examine the issues raised. theatrical role II offers a theoretical analysis of how real GDP, unemployment, and the Fisher Effect should impact the S&P 500.

Section troika provides information on the expected relationship between the economy and the following major industry categories: growth, cyclical, defensive, and interest-sensitive. Section IV introduces the look for design including the generalized least squares model. Section V presents the results and examines the allow econometric specification. Section VI concludes the study and reiterates important findings. II. abstractive MODEL Over the past 40 years a significant amount of research has been conducted on the overall stock market. Included in many of these studies is the rational expectations hypothesis that fast one Muth developed in 1961. The rational expectations hypothesis offered a unsanded perspective on the formation of prices. The general idea lav this... If you want to get a full essay, order it on our website: Ordercustompaper.com

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