to accompany
Chapter 12
Chapter 12
What are the major macroeconomic
techniques used to project the securities
market?
What is the leading economic indicator
approach? What are its uses and
shortcomings and can it be used to predict
stock prices?
What are the expected and the empirical
relationships between the growth of the money
supply and stock prices?
Chapter 12
What is meant by excess liquidity and how is it
measured?
What is the effect of monetary policy on stock
prices in the United States and around the
world?
What are the expected and the empirical
relationships between inflation, interest rates,
and bond prices?
What are the expected and empirical
relationships between inflation and stock
prices?
Chapter 12
When analyzing world security markets, what
is the relationship between inflation and
interest rates in alternative countries? What is
the effect of inflation and interest rates on
exchange rates?
How do the basic valuation variables differ
among countries?
How do stock price returns among countries
correlate when considering domestic returns
and returns in U.S. dollars?
Chapter 12
What factors should be considered when
analyzing the outlook for a foreign economy
and its stock and bond market?
What is the asset allocation procedure for a
global portfolio?
For a world asset allocation, what is meant by
normal weighting, underweighting, and
overweighting?
The Internet
Investments Online
www.ms.com
www.dri.mcgraw-hill.com/index.htm
www.yardeni.com
www.whitehouse.gov/fsbr/esbr.html
www.bog.frb.fed.us
www.phil.frb.org/econ/index.html
www.worldbank.org
www.bankamerica.com/econ_indicator/econ_indicator.html
www.personalwealth.com
www.spglobal.com/index.html
The Internet
Investments Online
www.treasury.boi.ie
www.dkb.co.jp/english/index.html
www.boj.or.jp/en/index.htm
www.indobiz.com
www.bankofengland.co.uk
www.bundesbank.de/index_e.html
www.banque-france.fr/gb/home.htm
www.ecb.int
End of Chapter 12
The Analysis of Alternative
Economies and Securities Markets:
The Global Asset Allocation
Decision
Future Topics
Chapter 13
Stock Market Analysis
Microanalysis of a countrys stock market
Application of the DDM and the FCFE models
to the aggregate stock market
How to arrive at an expected market value and
an expected rate of return for the stock
market?