Financial Review · 1998 · 25 citations · 11 references
EconomicsFinancial EconomicsAsset PricingMarket TrendBusiness Cycle AnalysisBusinessEconomic FluctuationStock Market CyclesDividend Discount ModelStock Market PredictionStock MarketFinancial ForecastBusiness Cycle DynamicsFinance
Abstract This paper demonstrates that the relation between stock market and business cycle dynamics can be conceptualized using a dividend discount model. The interaction of changes in earnings and interest rates throughout the economic cycle are shown to cause changes in the level of stock prices. This implies that monitoring and forecasting these factors can help explain and possibly predict stock price behavior over time.
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Stock Returns, Real Activity, Inflation, and Money
Eugene F. Fama · American Economic Review · 1981 · 2.6K citations
Fischer Black, Robert B. Litterman · Financial Analysts Journal · 1992 · 1.8K citations
Mathematical Programming, Economics, Portfolio Optimization +15
Financial Investment Opportunities and the Macroeconomy
Nai‐Fu Chen · The Journal of Finance · 1991 · 878 citations