(Almost) Everything You Need To Know About Finance from Robert Shiller’s Data
- Knowledge Required: Basic knowledge of R and finance.
- Lesson 1: Inflation matters
- Lesson 2: Share earnings grow 2% faster than inflation
- Lesson 3: Share prices track earnings over the long-term
- Lesson 4: Dividends matter
- Lesson 5: Dividend payout is unfashionable
- Lesson 6: Long-term equity returns beat Treasuries (but it’s a rough ride)
- Lesson 7: Equity/bond preference depends on your birthday
- Lesson 8: Dollar averaging helps
- Lesson 9: Valuation Predicts Long-Term Returns
This is neither an R primer nor an introduction to finance. If you have some familiarity with both R and finance this will help you deepen your knowledge.
As you go through the examples you will learn how to use the ggplot2 library to plot zoo time series, how to calculate annualised returns for series stored in zoo objects, how to construct an approximate total return series from a yield series, and how to convert a price and dividend series to a total return series for the S&P 500.