IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-234-7_8.html

The Fed Interest Rate as the Dominant Factor of Portfolio Equity Flows

In: Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)

Author

Listed:
  • Wilman San Marino

    (Universitas Pendidikan Indonesia)

  • Nugraha

    (Universitas Pendidikan Indonesia)

  • Ikaputera Waspada

    (Universitas Pendidikan Indonesia)

Abstract

The drivers of the equity portfolio flow to Emerging Market Countries (EMCs) are divided into factors, i.e., the global environment that supports EMCs investment and the attraction factors that are the domestic environment and EMCs attract those invest money. The main factor that has the greatest impact on the portfolio balance going to emerging countries is the Fed Funds rate, which is one of the most motivating factors. This research is based on descriptive analysis and literature review methods to explain why the Fed interest rate is so important. In conclusion, the Fed analyzes macroeconomic indicators to understand the current growth rate and potential in the future and adjust policies, one of which is interest rates. The Fed is an expert on economic information. Therefore the market will react to policy publications, and investors will make trading decisions based on those policies.

Suggested Citation

  • Wilman San Marino & Nugraha & Ikaputera Waspada, 2024. "The Fed Interest Rate as the Dominant Factor of Portfolio Equity Flows," Advances in Economics, Business and Management Research, in: Ratih Hurriyati & Lili Adi Wibowo & Ade Gafar Abdullah & Sulastri & Lisnawati & Yusuf Murtadlo (ed.), Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022), pages 67-71, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-234-7_8
    DOI: 10.2991/978-94-6463-234-7_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:spr:advbcp:978-94-6463-234-7_8. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.