Risk Management: Impact Of The Macroeconomic Variables In The Stock Market Sectors

Abstract

This research enhances the importance of the risk management and decision analysis, specifically addresses the impacts of macroeconomic variables in the stock market. The theoretical framework covers the evolution of investment analysis tools from portfolio management to recent financial theories applied to the Mexican Stock Market. In one of the recent works, Francisco Lopez, a Mexican researcher discovered evidences of different impacts of macroeconomic variables in the Mexican stock exchange market at a productive sector level. The scope of this work is to expand and continue to exploring these findings. The strategy is to apply statistical analysis over longitudinal data to identify and understand such impacts to the Mexican stock market. Volatility and risk impacts in the market create a challenging environment to the decision makers; analysis models could be enhanced to include these macroeconomic variables and assess impacts on specific productive sectors; the application of this knowledge will provide direct benefits to the market, the productive sectors and to the economy participants.