Political uncertainty has a significant impact on global financial markets, research reveals

Malik's research looks specifically at the dynamics of corporate bond markets and the trading of institutional investors and investment funds in relation to policy uncertainty. One key finding is the significant impact of Federal Open Market Committee (FOMC) announcements on corporate bond market dynamics. The proximity of the FOMC cycle weeks to the announcement dates plays a crucial role as institutional investors time their trades based on these cycles. In addition, FOMC-related uncertainty and announcements create predictable patterns in weekly bond yield dynamics.

"I found that the uncertainty surrounding political decisions at the national level, such as monetary and fiscal policy, has a lasting and significant impact on the trading and returns of financial assets," states Malik.

An innovative aspect of Malik's thesis is the evaluation of the performance of investment fund managers amid uncertainties in monetary policy announcements. This approach provides a new perspective on the ability of mutual fund managers to achieve above-average returns during periods of policy uncertainty.

Malik further explains, "My research is pioneering in its approach to measuring how coherence around uncertain economic events affects investors' capital allocation. It provides a new perspective to understand the impact of policy uncertainty on economic decision-making."

This thesis sheds light on the complex relationship between policy making and financial market behavior and highlights the need for investors and fund managers to closely monitor policy developments and adjust their strategies accordingly. Malik's work contributes significantly to the understanding of market dynamics in the context of policy uncertainties and provides valuable insight for investors, financial professionals and policy makers alike.

HT


https://nord.news/2023/11/30/political-uncertainty-has-a-significant-impact-on-global-financial-markets-research-reveals/?feed_id=57189

Comments

Post a Comment

Popular posts from this blog

Where will Reykjavík go in 250 million years?

Image
250 million years ago, all the continents on Earth were combined into one supercontinent called Pangea. It existed for about 100 million years, until the movement of tectonic plates finally began to break it apart. Tens of millions more years passed before Pangea finally split into two smaller continents, Laura and Gondwanaland, which broke up into continents long after, […] The article Where Reykjavík will go in 250 million years comes from ICELAND NEWS. https://nord.news/2023/01/31/where-will-reykjavik-go-in-250-million-years/?feed_id=8192
Read more

Long covid linked to air pollution exposure in young adults - new study

Image
Although covid-19 infections are usually less severe in young adults, this does not mean that they are not still at risk of complications from covid-19. For example around one in 25 adults over 16 have reported suffering from prolonged covid-19 symptoms after their first infection. For some, these symptoms lasted almost two years. While we are getting closer to understanding some of the genetic and immunological mechanisms that causes long-term covid, there's still a lot we don't know about the condition — including why people with otherwise mild covid-19 infections go on to develop long-term covid. We also know some of the risk factors that make people more likely to develop long-term covid - including suffering from chronic diseases and have one unhealthy lifestyle . And our latest study has now revealed that, at least for young adults aged 26-28, where they live can increase the risk of long-term covid. While most people recover from a covid-19 infection after a fe...
Read more

Study: The right time for physical activity increases fat metabolism

Image
Solna [Sweden]February 18 (ANI): According to a recent study from Sweden's Karolinska Institute and Denmark's University of Copenhagen, mice that exercised during an early active phase, which is comparable to morning exercise in humans, had higher metabolic rates than mice that exercised during a time when they usually rested. The results of the study were published in the journal PNAS. Physical activity at different times of the day can affect the body in different ways because the biological processes depend on the circadian rhythm of the cells. To determine how the time of day when the exercise is done affects fat burning, researchers at the Karolinska Institutet and the University of Copenhagen studied the adipose tissue of mice after a session of high-intensity exercise performed at two points in the daily cycle. an early active phase and early resting phase (equivalent to late morning and late evening sessions in humans). The researchers studied various markers for ...
Read more