The Role of Monetary Policy in Investment Management

Global stock and bond markets rise and fall in response to naunces in speeches made by Federal Reserve Board Chairman Alan Greenspan and other Fed officials. In fact, markets often vacillate immediately and dramatically in response to Greenspan's public remarks. The relationship bertween Fed monetary policy and security return patterns deserves serious examination, and receives it within these pages. This book presents substantial evidence that an association exists between monetary conditions and returns to various asset classes. It goes on to show how, over the past four decades, investors had the opportunity to use monetary policy to significantly enhance their portfolio performances. Designed to help readers better understand the importance of monetary policy in investment management, this book also explores topics such as bull; bull;How one can gauge the monetary policy stance of the Federal Reserve bull;What actions the Federal Open Market Committee (FOMC) take that affect monetary aggregates bull;How many tools the Fed relies to carry out its objectives.

Gerald R. Jensen is professor of finance at Northern Illinois University, where he teaches in the Review Course for CFA Candidates and the Executive MBA Program.