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A Review about the Business Cycle and Stock Market
- 1 Business School, Sun Yat-sen University, Gongchang street, Shenzhen, China
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Abstract
This study reviews extensive research examining the relationship between business cycles and stock market returns. It explores both the impact of business cycles on stock market volatility and the predictive power of stock markets regarding business cycles. Existing theories and empirical studies have provided significant insights, yet a notable gap exists in understanding stocks' differential sensitivity to economic fluctuations across various industries. This review highlights the need for future research to adopt a more granular approach, considering industry-specific responses and utilizing qualitative methods to explain these differences. Additionally, regional variations in the relationship between business cycles and stock market returns are examined, noting distinct patterns in North America, Europe, Asia, Latin America, Africa, and the Middle East. The review underscores the importance of data-driven approaches in predictive analytics to uncover new theoretical perspectives and improve the predictability of economic phenomena. Ultimately, this study aims to comprehensively understand the interplay between economic cycles and stock markets, offering valuable insights for investors and policymakers.
Keywords
business cycle, stock market, economic forecasting
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Cite this article
Qu,Z. (2024).A Review about the Business Cycle and Stock Market.Advances in Economics, Management and Political Sciences,124,17-21.
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Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis
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