Short-term Equity Risk More Political Than Economic?
May 28, 2019 - Economic Indicators, Equity Premium, Political Indicators, Sentiment Indicators
How does news flow interact with short-term stock market return? In their April 2019 paper entitled “Forecasting the Equity Premium: Mind the News!”, Philipp Adämmer and Rainer Schüssler test the ability of a machine learning algorithm, the correlated topic model (CTM), to predict the monthly U.S. equity premium based on information in news articles. Their… Keep Reading