ADMS 4501 Lecture Notes - Risk Premium, Fiscal Policy, Money Supply

• School: York University
• Department: Administrative Studies
• Course: ADMS 4501
• Professor: Lois King

Document Summary

Economic analysis: global / macroeconomic factors, we"re looking at asset allocation and global allocation. We would overweight or underweight classes of assets based on economic phenomena like inflation, which would lower the price for bonds. Industries: if inflation is coming down , we would look at financial industries, if inflation is going up, we would look at consumer and resources industries which would transfer the inflation effect onto the consumers. You could use economic data to look at what would happen for instance, for valuation of stocks, we are looking at the future cash flows and predicting what the value of the stock should be at present. Statistic canada does not release any information, but mli supplies such composite indicators. Housing market is a good indicator: if it"s good, means job market is good, people feel secure and are ready to spend. If the housing market is tanking, then that kills consumer spending and marketing.