Oil price shocks and stock market returns

Abstract

During the past few months, there has been a steady downside trend on oil price. From summer, 2015 to winter, 2016, the oil price has declined to the $20 range. Its rate of decline is amazing, having lost $10, one third of its value, in just one month. This paper presents a survey on recently published studies on relationship between oil price and stock market. The study covers several studies on the effects of oil price on China, India, Lebanon, United States and some other G7 stock markets. We also review the effects of oil price volatility on stock market. The results of most studies have indicated some strong relationships between oil price volatility and stock market return.

Artificial intelligence combined with nonlinear optimization techniques and their application for yield curve optimization

“…Finally, the LM algorithm was run with HGPSO results as an initial condition. The results are [20]. Therefore, when there is serious concern about downside on economy, most investors prefer to stay in the safe side by holding significant amount of money as either cash or safe investment options such as longer term bond market, etc.…”