What Information Drives Asset Prices?
Investors are inundated with news about business, politics, and the global economy—and use it to assess the health of the economy, set prices, and forecast returns. But in this flood of information, what in particular are investors paying attention to?
Content: Article | Authors: Anisha Ghosh, George M. Constantinides, Michael Maiello | Source: University of Chicago | Subjects: Economics, Finance
Why Markets Need Not Fear Uncertainty
Here’s a chicken-or-egg finance question: Do volatility shocks in equities markets cause business-cycle downturns, or do business-cycle downturns manifest as highly volatile stock prices? Research suggests that volatility is evidence of contractionary economic conditions already in place.
Content: Article | Authors: David Berger, Ian Dew-Becker, Michael Maiello, Stefano Giglio | Source: University of Chicago | Subject: Economics