Stagflation and the South African equity market

Chantal Marx () and Jean Struweg ()
Additional contact information
Chantal Marx: FirstRand Bank
Jean Struweg: University of Johannesburg

No 2204597, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: By empirically examining South African equity prices between 1969 and 2013, this study attempts to determine whether or not stagflationary conditions warrant a change in perspective by South African investors. This study considers whether macro conditions really are compromised and explores whether the behaviour of market returns and equity valuations change during periods of stagflation. It is found that the relationship between economic growth and inflation changes during periods of stagflation and that earnings yield models and equity returns models exhibit different behaviour between periods of stagflation and no-stagflation. This study therefore confirms that the South African stock market needs to be approached differently during periods of stagflation.

Keywords: Stagflation; Equity Markets; South Africa; Valuation; Growth; Inflation (search for similar items in EconPapers)
JEL-codes: E31 (search for similar items in EconPapers)
Pages: 1 page
Date: 2015-09
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 37-37

Downloads: (external link)
https://iises.net/proceedings/4th-economics-financ ... =22&iid=037&rid=4597 First version, 2015

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sek:iefpro:2204597

Access Statistics for this paper

More papers in Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().