The biggest and most well-known unsolved problem in academic finance is famously referred to as the Equity Premium Puzzle. It refers to the unexplained phenomenon that for over 100 years the average return on a well-diversified portfolio of equities has far outperformed that of risk-free,...

Since the dismantling of the Bretton Woods system, gold has delivered average return comparable to the average return delivered by the aggregate US stock market. This suggest that none of the growth and technological improvement gains accrued to the financiers. In the context of modern asset...

TIPS (Treasury Inflation-Protected Securities), or the real yield, are directly and inversely impacted by Fed Asset levels to the degree they depart from real GDP growth (the excess of monetary capital thus created reduces the real yield obtainable since it outpaces real GDP growth which is the...

Economic assets can be classified into two broad categories: those earning an inherent return and those earning a fiat money return. This article shows that both are valued according to the same general principle based on GDP (a constant equal to expected long term real per capita GDP growth)...

Asset returns move predictably over the credit cycle. Using credit expansion in the nonfinancial corporate sector to capture the phase of the credit cycle, this paper shows that both equity and corporate bond returns decline as credit expansion accelerates. Impulse response analysis suggests...

This paper extends recent research on the behaviour of the t-statistic in a long-horizon regression (LHR). We assume that the explanatory and dependent variables are generated according to the following models: a linear trend stationary process, a broken trend stationary process, a unit root...

There is as yet a study of money supply effect on the aggregate bank stock prices using modern money supply theories.Endogenous money theory suggests loans made by banks cause deposits, and, consequently, bank creates money supply. Resulting changes in bank's loans and deposits affects bank...

The bank lending market stalled in 2016, giving rise to fundraising through the domestic corporate bond market. The market growth was driven up primarily by increase in foreign-currency loans. Like in previous years, about 25% of new bonded loans in the rouble bond segment were issued by...

Using U.S. quarterly data from 1960, the paper studies the interaction between bank stock returns and aggregate credit fluctuations on a set of economic dimensions. First, I investigate the source of "Neglected Crash Risk" in U.S. bank returns using a new deviation measure of aggregate loans per...

Securities crowdfunding — the sale of unregistered securities to the public over the Internet — has come under attack before it has even begun. Legal scholars in particular have expressed concern that investors will lose any money they invest in crowdfunding companies. Even assuming that...