To Study the Ability of the NYSE and NASDAQ Market Performance to Beat the Inflation Rate in US

Abstract

The investment had been crucial to overcome the inflation rate or time value of money which could affect the wealth of the investors. The goal of the investment had been always holding the priority to beat the inflation rate to ensure the value of the money is not loss over time. This study will focus to study and understanding the ability to investors to beat the inflation in US by investing in the diversified stock portfolio through the representation of the NYSE and NASDAQ market index performance against the inflation rate through the Customer Price Index (CPI) for the country. The quantitative analysis method was applied to study the past trend of 30 years for the growth for the CPI against the NYSE and NASDAQ market index growth over the targeted period. The result from the outcome of the study had suggested there is very weak negative correlation between the C{I growth against the NYSE and NASDAQ market index growth where the regression analysis also failed to show significant relationship between the variables. This had been showing strong disagreement with the previous study where the discussion on the potential reasons had been demonstrated before moving to conclude the outcome of the study with the suggestion on the potential future research for the researchers.