Presenter(s)

    Hayden Lee Gray

    Comments

    Presentation: 9:00-10:15, Kennedy Union Ballroom

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    Description

    In this study I consider two arguments concerning consumer discretionary sector stock returns in a rising interest rate environment. First, and using fed fund rates as my interest rate, rising rates due to economic growth and not federal reserve monetary policy, will most likely result in positive returns for consumer discretionary stocks. Second, if the fed fund rate increase is due to aggressive monetary policy tightening actions by the fed, then the consumer discretionary sector stock returns will likely be negative. To test my assumptions, I use returns for the top 20 stocks in the consumer discretionary sector over four distinct periods of rising fed fund rates within the overall period 1999-2023. I use the measure of skewness to validate my assumptions.

    Publication Date

    4-17-2024

    Project Designation

    Independent Research

    Primary Advisor

    Robert D. Dean, Jon A. Fulkerson, Henry G. Willmore

    Primary Advisor's Department

    Economics and Finance

    Keywords

    Stander Symposium, School of Business Administration

    Institutional Learning Goals

    Scholarship

    Consumer Discretionary Sector Returns in a Rising Interest-Rate Environment: an Empirical Analysis, 1999-2023

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