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The Determination of the Stock Market and Bond Market

   

Added on  2020-02-24

6 Pages830 Words65 Views
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Running head: FINANCIAL ACCOUNTING Financial Accounting Name of the StudentName of the UniversityAuthors NoteCourse ID
The Determination of the Stock Market and Bond Market_1
1FINANCIAL ACCOUNTINGTable of ContentsIntroduction:...............................................................................................................................2Market Overview of shares and Bond:.......................................................................................2Conclusion:................................................................................................................................4Reference List:...........................................................................................................................5
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2FINANCIAL ACCOUNTINGIntroduction: The current study is based on the determination of the stock market and bond marketwith in depth analysis of return on investment and trends over the years. The study will beemphasising on the market return over the years along with the unpredictable factors sucheconomic circumstances around the international market.Market Overview of shares and Bond: After the worst start to the year, the stock market has managed to attain a new heightin the year 2016. All the key indexes have rebounded to records and have defied theprojections (Deegan, 2013). The equity returns, particularly are difficult to forecast in theshort run which is buffeted around the unpredictable factors such as economic situations bothin the US and overseas market. Market returns on the stock and bond market over the nextdecades are anticipated to fall short of the historical averages as per the estimates laid downfor the year 2017 by the market analyst. The seven year to year have declined in S&Pearnings of that is largely driven by the energy sector and bottomed out in the quarter 2 of the2016 and third quarter of 2016 and witnessed a growth of earning per share of 2.75%.The main reason behind the lower anticipations for the market return is below theaverage inflation in spite of the increase in the expected inflation. Historically, lower amountof interest rates and lower growth in price to earnings (P/E) ratio is because of theexpectations for long term economic growth (Weil et al., 2013). These are anticipated to actas long term pulls on return and yields. The reduced outlook follows an extended period ofdouble digit return for some class of assets. Presently the cost of individual stock analysis isgreater than the analysis of S7P of 500.
The Determination of the Stock Market and Bond Market_3

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