PT - JOURNAL ARTICLE AU - Rob Arnott AU - Feifei Li AU - Xi Liu TI - Labor Conditions and Future Capital Market Performance AID - 10.3905/jpm.2016.43.1.054 DP - 2016 Oct 31 TA - The Journal of Portfolio Management PG - 54--71 VI - 43 IP - 1 4099 - https://pm-research.com/content/43/1/54.short 4100 - https://pm-research.com/content/43/1/54.full AB - The authors find a linkage between labor market conditions and future capital market returns: An increase in the unemployment rate is linked to positive excess returns in both stock and bond markets for the 24-month period following the unemployment rate announcement. Furthermore, by controlling for some well-known market and macroeconomic variables, the authors find that the unemployment rate still preserves, in general, its power in predicting future capital market performance.TOPIC: Performance measurement