Cappiello, Lorenzo - 2000
, like oil prices, inflation, business cycle proxies,
interest rates, etc. Numerous studies have pointed out that returns and … volatility of
stocks and bonds are linked to the business cycle. Most of this research finds that the
stock market falls before … (or in concomitance of) economic recessions, anticipating
(or matching) a downturn in the business cycle, and rises before …