Stock Returns vs Inflation Expectations

14.December 2022

What happens to the stock prices when inflation expectations decrease or increase? The authors Manav Chaudhary and Benjamin Marrow, in their paper Inflation Expectations and Stock Returns, explore this topic and find that when inflation expectation is high, stock prices also rise in their value. The evidence they present suggests that stocks have been a hedge against expected inflation for the last couple of decades and that this effect is present across stocks from all industries.

Continue reading

Subscribe for Newsletter

Be first to know, when we publish new content

    The Encyclopedia of Quantitative Trading Strategies

    Log in