PlumX Metrics
Embed PlumX Metrics

Incorporating Macroeconomic Indicators and the Baker-Wurgler Investor Sentiment Model to Forecast Market Returns

2023
  • 0
    Citations
  • 16
    Usage
  • 0
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

Artifact Description

The ability to predict rises and falls in financial markets has long been studied, with multiple models developed. This research seeks to develop a new model by extending the Baker-Wurgler Investor Sentiment Model to include macroeconomic variables while giving respect to differences in financial regulations. Through Ordinary Least Squares Regression, we seek to predict market returns, proxied by the S&P500 Index, through variables such as the Consumer Price Index and Gross Domestic Product (among others), while adjusting for the enactment of the Dodd-Frank Wall Street Reform Act, Gramm-Bliley-Leach Act, and the near-full repeal of the Glass-Steagall Act.

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know