IDEAS home Printed from https://ideas.repec.org/p/sek/iefpro/2204597.html
   My bibliography  Save this paper

Stagflation and the South African equity market

Author

Listed:
  • Chantal Marx

    (FirstRand Bank)

  • Jean Struweg

    (University of Johannesburg)

Abstract

By empirically examining South African equity prices between 1969 and 2013, this study attempts to determine whether or not stagflationary conditions warrant a change in perspective by South African investors. This study considers whether macro conditions really are compromised and explores whether the behaviour of market returns and equity valuations change during periods of stagflation. It is found that the relationship between economic growth and inflation changes during periods of stagflation and that earnings yield models and equity returns models exhibit different behaviour between periods of stagflation and no-stagflation. This study therefore confirms that the South African stock market needs to be approached differently during periods of stagflation.

Suggested Citation

  • Chantal Marx & Jean Struweg, 2015. "Stagflation and the South African equity market," Proceedings of Economics and Finance Conferences 2204597, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iefpro:2204597
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=037&rid=4597
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Kamran Khan & Jian-Zhou Teng & Javed Pervaiz & Sunil Kumar Chaudhary, 2017. "Nexuses between Economic Factors and Stock Returns in China," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(9), pages 182-191, September.

    More about this item

    Keywords

    Stagflation; Equity Markets; South Africa; Valuation; Growth; Inflation;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iefpro:2204597. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.