Overview and Research question.
The past few decades have had a growing interest among practitioners and scholars and about the relationship existing between macroeconomic variables and mainly stocks, house prices, and asset prices. In an expanding economy, stocks prices of are expected to increase owing to an expectation of future large cash flows and profits for businesses and various players within an economy. On the same note, a downward spiraling or bad economy is marked by expectations of future low cash flows as well as profits decrease and consequently a dercre4ase in socks prices. Stock markets are representative of a country’s economy Continue reading...