The predictive power of the yield spread in timing the stock market

Saumitra Bhaduri and Ravi Saraogi ()

Emerging Markets Review, 2010, vol. 11, issue 3, 261-272

Abstract: This study examines the relationship between yield spread and stock market returns. It also explores a dynamic trading strategy of timing the Indian stock market using the yield spread as an indicator variable. The study concludes with the important result that the yield spread is successful in identifying points of entry and exit for the Indian stock market, thereby delivering superior returns compared to a conventional buy and hold strategy.

Keywords: Yield; spread; Stock; returns; Market; timing; India (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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