| Abstract [eng] |
Analysis of current economic situation in US, study of independent variables money supply and interest rate impact on S&P500 stock returns and valuation. Problem. Valuation of the stock market varies, and comparative model depends on assumptions of valuations. Objective. Monetary policy impact on S&P500 stock prices and valuations. Analyze literature, analyze the relationship between monetary policy and stock returns, interpretate the results. Research methods. Comparative analysis, analysis of scientific literature, statistical analysis and interpretation, graphical modeling. Finally, in the results section it was revealed that effective federal funds rate is important and significant factor for S&P500 index price changes, but dependency varies on historical period. It was also found out that money supply is an important variable which affects the S&P500 index. In conclusion, in any case fundamental analysis is helpful to analyze which determinants could influence stock prices and what we could expect in the future based on the past data. Conclusions of the FMT: Fundamental analysis is affected by monetary policy. The effect varies throughout the period analyzed, based on economic situation and expectations of the market participants. |
