consumption, aggregate wealth, and labour income should predict both stock returns and government bond yields. We use data for … consumption to rise. Regarding government bond yields, when bonds are seen as a component of asset wealth, then investors react in … temporarily reduce their consumption. …

deviations from the common trend among consumption, aggregate wealth, and labour income, cay, and focus on the implications for … future stock returns to be higher, they will temporarily allow consumption to rise. Regarding housing returns, if housing … substitutes consumption will be temporarily reduced. …

consumption, aggregate wealth, and labour income should predict both stock returns and housing returns. We use quarterly data for … temporarily allow consumption to rise. Regarding housing returns, if housing assets are complementary to stocks, then investors … their consumption. …

In this paper, I assess the forecasting power of the residuals of the trend relationship among consumption, aggregate … stock returns are expected to be higher in the future, forward-looking investors will temporarily allow consumption to rise … of public finances, then they will let consumption fall temporarily below its equilibrium level. …