From Main Street to Wall Street
How the Economy Influences Stock Markets and
What Investors Should Know.
In the long run, economies grow. Over the shorter-term business cycle, economic activity contracts and expands. From Main Street to Wall Street examines the long-run relation between economic growth and stock returns and the shorter-term business-cycle relation. It investigates the complex relationship between the economy and the stock market, and guides readers through the fascinating interaction between economic activity and financial markets.
From Main Street to Wall Street draws heavily on data, supporting academic theories with empirical facts, and backing up arguments in intuitive ways. It discusses how investors can use knowledge of economic activity and financial markets to formulate expectations to future stock returns, and helps scholars and practitioners navigate financial markets by understanding the economy.
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Table of Contents
See Oxford Scholarship Online for detailed description with abstracts of chapters etc.
1: Introduction
Part I: Growth and Returns: Basic Definitions and Stylized Facts
2: Long-run Economic Growth
3: Long-run Stock Market Returns
4: Drivers of Stock Returns
Part II: Economic Growth and Stock Returns in the Long Run
5: Economic Growth and Stock Returns in the Long Run
6: Growth and Returns Across Countries
7: The Equity Premium
Part III: Economic Growth and Stock Returns During the Business Cycle
8: Business Cycle Fluctuations in Economic Activity
9: The Stock Market over the Business Cycle
10: Monetary Policy and the Business Cycle
11: Monetary Policy, Interest Rates, and the Stock Market
12: The 2008-2009 Financial Crisis and its Aftermath
13: Value, Size, Sector, and Momentum Stocks
Part IV: The Prospects for Economic Growth
14: The Outlook for Long-run Economic Growth
15: Judging the Stance of the Business Cycle
Part V: The Prospects for Returns
16: Predicting Returns: Theory
17: Predicting the Short-to-Medium Horizon Returns
18: Predicting Long-Horizon Returns
19: Predicting Returns over Several Decades
Part VI: Practical Investment Advice
20: Building and Maintaining Investment Portfolios