Influence of Various Asset Classes on Equity as an Asset Class: A USA Based Study

The study investigated the influence of asset classes like bond, commodity, venture capital, and real estate on the performance of equity as an asset class. The bond index, commodity index, U.S. venture capital index, and real estate index data was taken only for the USA market. The study revealed that U.S. equity market doesn’t perform in isolation and is highly related to other asset classes except bond/debt asset class. Therefore, it can be concluded that equity market doesn’t work in isolation and it related to performance of other asset classes in the financial market.