Economic forces and the OMXS30 - A study of economic variables' ability to predict stock returns on the OMXS30
This paper investigates whether the information from a number of different economic variables have the ability to predict stock returns on the OMXS30. The estimated forecast models are evaluated with a number of standard metrics to find the best performing models. These models are then used in combination with two portfolio strategies and tested over different time periods and forecast horizons, t