What are the issues with using GDP growth to predict stock prices? Growth of GDP (Gross domestic product) of economy is in line with the revenue growth of companies. Nonetheless there are practical...

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Issues with Using GDP Growth to Predict Stock Prices
Gross Domestic Product (GDP) has been identified as an important tool acting as a function to depict the commercial and economic situations of a nation. As supported by Adrian, Boyarchenko and Giannone (2019), a substantial decrease in the conditional mean of the GDP rate is directly proportional to the degrading financial conditions with a rise of conditional volatility. However, in such cases, the overall optimistic picture of the economic growth of a nation can be depicted.
The prediction of the rise or decline in prices of commodities, such as the...