Subject Area

Economics

Description

This economic analysis focuses on the valuation of the Standard & Poor’s (S&P) 500 Index. Using economic, monetary, and behavioral indicators, and annual data during the period 1990 - 2024, these indicators serve as independent variables in an economic regression, which quantifies the statistical relationship between key factors and the average annual market price of the Standard & Poor’s 500 Index. Resulting in a linear model that can be used to demonstrate accuracy in valuating the S&P 500 Index, in comparison to the average annual market price, along with anticipated effects on households invested in the financial markets.

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Economic Analysis of the S&P 500 Index Valuation and Household Wealth

This economic analysis focuses on the valuation of the Standard & Poor’s (S&P) 500 Index. Using economic, monetary, and behavioral indicators, and annual data during the period 1990 - 2024, these indicators serve as independent variables in an economic regression, which quantifies the statistical relationship between key factors and the average annual market price of the Standard & Poor’s 500 Index. Resulting in a linear model that can be used to demonstrate accuracy in valuating the S&P 500 Index, in comparison to the average annual market price, along with anticipated effects on households invested in the financial markets.