Reexamining Stock Valuation and Inflation: The Implications of Analysts' Earnings Forecasts

Topics:
Inflation
Tags:
Currency & Foreign Exchange,
Earnings Forecast,
Finance,
Inflation,
Investment,
Stock
Source:
The Federal Reserve Board

FREE Registration is required

Overview: This paper examines the effect of inflation on stock valuations and expected long-run returns. The negative relation between equity valuations and expected inflation is found to be the result of two effects: a rise in expected inflation coincides with both (i) lower expected real earnings growth and (ii) higher required real returns. But the inflation factor in expected real stock returns is also in long-term Treasury yields; consequently, expected inflation has little effect on the long-run equity premium.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 281KB | Date: Jan 2001 | Pages: 44

People who downloaded this item also downloaded

White Paper Inflation, Inequality, and Social Conflict
Download Analyzing Your Business's Strengths, Weaknesses, Opportunities, and Threats
White Paper The Forgotten Problem of Inflation
Case Study Wireless Technology Dramatically Reduces Medication Errors: Bar Code System's Approach and Effectiveness Earns Multiple Innovator Awards
White Paper Inflation And Its Impact On Investments

Top results from Inflation

White Paper Security Threat Report: July 2009 update
White Paper Dynamic Power Variations in Data Centers and Network Rooms
White Paper Coordination, Fair Treatment and Inflation Persistence
White Paper Inflation Persistence and Relative Contracting
White Paper Does the Labor Share of Income Drive Inflation?

» View all Inflation listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).