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We examine how generations X, Y, and Z might react to market-moving events over short- and long-term horizons to maintain an optimal balance among risk, return, and investor preferences. To analyze various portfolio variants, we use data on selected global assets and several types of economic and non-economic events for 2000-2021H1, applying the mean-variance optimization procedure. According to our results, in optimal portfolios, fixed-income assets dominate and are the main driver of portfolio adjustments. Portfolios with short-term horizons with less risk-averse investors and those for generation Z are the most reactive to analyzed types of events. None of the events per se creates an extraordinary opportunity to increase returns. However, expansionary monetary policy generates the greatest potential for incremental returns. Our findings provide practical implications for investors on how to adjust their portfolios in response to significant market events.

We verify the potential impact of credit-enhanced monetary policy rule on inflation, GDP and credit dynamics in Turkey (2002Q1—2018Q3), where the Turkish Cental Bank takes into account financial stability in its inflation-targeting strategy. We estimate interest rates from two monetary policy rules (classic and augmented with the exogenous credit-to-GDP gap) with time-varying parameters (TVP) and assess their performance in a TVP-VAR model. The results show that after the global crisis both observed interest rates and those estimated from the Taylor-rule impact inflation and the GDP in a similar way. The central bank's monetary policy after 2010 was in line with the Taylor rule and took into account cyclical systemic risk with increased strength in the monetary transmission mechanism. Yet, before the crisis, both types of Taylor rules indicate that the bank's monetary policy should have been more restrictive. [ABSTRACT FROM AUTHOR]

Based on a sample of 14 Central, Eastern and Southeastern European (CESEE) countries during the period between 1995 and 2015, we analyse how foreign-owned banks and foreign trade impact economic growth. To date, studies have concentrated on the interlinkages between different forms of foreign bank presence (cross-border flows, branches, subsidiaries and syndicated loans) and the scale of foreign trade (imports and exports). Our approach is novel because we analyse the impact of the similarity between the geographical structures of foreign-owned banks and foreign trade on economic growth. We find that this similarity is not conducive to economic growth and reduces the benefits of a country's openness to trade. [ABSTRACT FROM AUTHOR]

This paper explores the finance-growth nexus in 14 countries from Central, Eastern and South-eastern Europe (CESEE) over the 1995-2015 period. It investigates whether including two 'non-standard' variables, i.e. a credit cycle dummy and foreign bank relevance, deepens our understanding of the role of a typical financial determinant of economic growth, i.e. bank credit. We find evidence of a negative impact of bank credit on economic growth and the significance of cyclical fluctuations of bank credit. In contrast, a higher market share of loans granted by foreign-owned banks in a cyclical upswing and stock market capitalisation are found to have a proactive effect on growth. [ABSTRACT FROM AUTHOR]