Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)

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The Fed Interest Rate as the Dominant Factor of Portfolio Equity Flows

Authors
Wilman San Marino1, *, Nugraha1, Ikaputera Waspada1
1Universitas Pendidikan Indonesia, 40154, Bandung, Indonesia
*Corresponding author. Email: wilmansanmarino@upi.edu
Corresponding Author
Wilman San Marino
Available Online 29 September 2023.
DOI
10.2991/978-94-6463-234-7_8How to use a DOI?
Keywords
Portfolio Equity Flows; Fed interest rates; Push Factors; Pull Factors
Abstract

The drivers of the equity portfolio flow to Emerging Market Countries (EMCs) are divided into factors, i.e., the global environment that supports EMCs investment and the attraction factors that are the domestic environment and EMCs attract those invest money. The main factor that has the greatest impact on the portfolio balance going to emerging countries is the Fed Funds rate, which is one of the most motivating factors. This research is based on descriptive analysis and literature review methods to explain why the Fed interest rate is so important. In conclusion, the Fed analyzes macroeconomic indicators to understand the current growth rate and potential in the future and adjust policies, one of which is interest rates. The Fed is an expert on economic information. Therefore the market will react to policy publications, and investors will make trading decisions based on those policies.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
29 September 2023
ISBN
10.2991/978-94-6463-234-7_8
ISSN
2352-5428
DOI
10.2991/978-94-6463-234-7_8How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Wilman San Marino
AU  - Nugraha
AU  - Ikaputera Waspada
PY  - 2023
DA  - 2023/09/29
TI  - The Fed Interest Rate as the Dominant Factor of Portfolio Equity Flows
BT  - Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
PB  - Atlantis Press
SP  - 67
EP  - 71
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-234-7_8
DO  - 10.2991/978-94-6463-234-7_8
ID  - Marino2023
ER  -