Stock Return Forecasting with Metals: Sentiment versus Fundamentals

By Steven Jordan, Ph.D., Alfaisal University, Saudi Arabia; Andrew Vivian, Ph.D., Loughborough University, United Kingdom; and Mark Wohar, Ph.D., University of Nebraska-Omaha.

As summarized by Ana-Maria Fuertes, Ph.D., Professor in Finance and Econometrics, Cass Business School, City, University of London, U.K. and Member of the GCARD’s Editorial Advisory Board

This article documents empirically that precious metals contain economically valuable predictive information content for stock returns. These gains remain after considering reasonable transaction costs, and are large enough to make active portfolio management potentially attractive, even for individual investors.