Publicação
Treasury bond returns and U.S. political cycles
| Resumo: | This work-project complements the existing studies on the linkage between financial investments returns and the political cycles, by relating Treasury bond returns and Presidential cycles. Previous research shows that stock market tends to behave better during Democratic presidencies, and in this work it is shown a compatible result, with long-term Treasury bonds having higher absolute, and excess returns during Republican Administrations. This difference is not explained by business cycles and there are no significant differences in risk, as measured by the volatility of returns, between the two political cycles. Empirical evidence is also found showing that there are better economic and financial conditions to invest in T-bonds' markets during Republican than during Democratic Administrations. |
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| Autores principais: | Freixa, Carlos Miguel Silva |
| Assunto: | Treasury bond returns Political cycles Political economy |
| Ano: | 2009 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This work-project complements the existing studies on the linkage between financial investments returns and the political cycles, by relating Treasury bond returns and Presidential cycles. Previous research shows that stock market tends to behave better during Democratic presidencies, and in this work it is shown a compatible result, with long-term Treasury bonds having higher absolute, and excess returns during Republican Administrations. This difference is not explained by business cycles and there are no significant differences in risk, as measured by the volatility of returns, between the two political cycles. Empirical evidence is also found showing that there are better economic and financial conditions to invest in T-bonds' markets during Republican than during Democratic Administrations. |
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