From Main Street to Wall Street

by Jesper Rangvid

• ISBN13: 9780192636270
• ISBN10: 0192636278
• Format: Nonspecific Binding
• Copyright: 2021-01-21
• Publisher: Oxford University Press Academic UK

Summary

In the long run, economies grow. Over the shorter-term business cycle, economic activity contracts and expands. From Main Street to Wall Street examines both the long-run relation between economic growth and stock returns and the shorter-term business-cycle relation. It examines the complex relationship between the economy and the stock market, and guides readers through the fascinating interaction between economic activity and financial markets.

From Main Street to Wall Street draws heavily on data, supporting academic theories with empirical facts, and backing up arguments in intuitive ways. It discusses how investors can use knowledge of economic activity and financial markets to formulate expectations to future stock returns, and helps scholars and practitioners navigate financial markets by understanding the economy.

Author Biography

Jesper Rangvid, Professor of Finance, Copenhagen Business School, Denmark

Jesper Rangvid is Professor of Finance and Director of the Pension Research Centre (PeRCent) at Copenhagen Business School. Rangvid earned his master's degree in economics from the University of Copenhagen and his Ph.D. in finance from Copenhagen Business School. In his research, Rangvid studies asset return determination and forecastability, financial crises, financial institutions (in particular asset managers and banks), and household finance. He is Chairman of the Danish Council for Pension Projections, and acts as an advisor to public agencies and private companies. Rangvid was Chairman of the government-appointed committee that investigated the causes and consequences of the financial crisis in Denmark. He has been a member of numerous boards, commissions, and advisory bodies. Jesper Rangvid is often cited and used as an expert on economic and financial topics in the media.

Table of Contents

1. Introduction
Part I: Growth and Returns: Basic Definitions and Stylized Facts
2. Long-run Economic Growth
3. Long-run Stock Market Returns
4. Drivers of Stock Returns
Part II: Economic Growith and Stock Returns in the Long Run
5. Economic Growth and Stock Returns in the Long Run
6. Growth and Returns Across Countries
7. The Equity Premium
Part III: Economic Growth and Stock Returns During the Business Cycle
8. Business Cycle Fluctuations in Economic Activity
9. The Stock Market over the Business Cycle
10. Monetary Policy and the Business Cycle
11. Monetary Policy, Interest Rates, and the Stock Market
12. The 2008-2009 Financial Crisis and its Aftermath
13. Value, Size, Sector, and Momentum Stocks
Part IV: The Prospects for Economic Growth
14. The Outlook for Long-run Economic Growth
15. Judging the Stance of the Business Cycle
Part V: The Prospects for Returns
16. Predicting Returns: Theory
17. Predicting the Short-to-Medium Horizon Returns
18. Predicting Long-Horizon Returns
19. Predicting Returns over Several Decades
Part VI: Practical Investment Advice
20. Building and Maintaining Investment Portfolios