New Korean fanboy here. I dont care for the gay obvious Korean tech bubble (e.g Sk Hynix etc.), but other sectors in the Korean industry. I honestly think Americas future will be dependent on Korea more so than Japan in the next 5 years due to Russia and China.>ExcerptThis paper examines how scheduled monetary policy announcements affect the Korean stock market by comparing the effects of Federal Open Market Committee (FOMC) announcements with those of the Monetary Policy Board (MPB) of the Bank of Korea. We document a pronounced positive return drift around FOMC announcements, while comparable effects are largely absent around MPB meetings, even after controlling for international spillovers from exchange rates and U.S. equity markets.We show that both FOMC and MPB announcements are associated with significant declines in implied volatility, indicating substantial uncertainty resolution around both types of events. However, uncertainty resolution alone is not sufficient to generate return drift. Using economic policy uncertainty as a proxy for the information environment, we find that monetary policy–related risk is more likely to be priced in equity returns when information conditions are favorable. In low-uncertainty states, higher market risk is associated with stronger volatility declines and larger return responses around policy announcements. By contrast, when the information environment is poor, uncertainty resolution occurs without systematic return drift, particularly around domestic monetary policy announcements. These findings highlight the role of the information environment in shaping the pricing of monetary policy risk.
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Minimum equity standard. Completely misses on key absolute metrics. Personally need to see consistent growth for at least 5 quarters in substantive returns (souls converted back to Christianity) before I'd even consider it. Willing to re-evaluate at that time at committee discretion.
