Examine the patterns of yield curves and their shifts over time, and how they affect the real economic productivity and the performance of the stock market (For example, examine the impact of term- spread, credit spread, short rate, etc, on stock market returns.) Given your analysis, propose a trading strategy(-gies) on stock market indices or bond indices using yield curve measures as trading signals. Show that your strategy(-gies) would have worked well historically. Provide risk and return analysis to justify your choice. Discuss the potential risks in implementing your strategies in real life, and what you can do to mitigate them

Answer rating: 100% (QA)

the relationship between yield curves and the stock market and discuss potential trading strategies based on yield curve measures Remember implementin... View the full answer