Fiscal Intervention Helps Stocks, But Does Not Rise All Boats the Same – Study

New academic research looks at the impact monetary and fiscal interventions have on global markets, pointing to different reactions based on market sector. Banking sector indexes tend to find benefit from the market interventions while other sectors find lessor benefits, pointing to hedging opportunity.

Do the same monetary and fiscal policy intervention produce different effects on financial and non-financial companies?

The white paper, “Stock Market Reaction To Policy Interventions,” asked three primary questions: Did policy interventions produce positive effects for all (not only financial) listed companies? Did the same policy intervention produce different effects on financial and non-financial companies? Did some policy actions work better than others?

Researchers...