Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

The Impact of $1.9 Trillion Covid Relief Bill on the Return by Different Moving Average Strategy

Authors
Haoyu Cheng1, , *, Wanqi Zheng2,
1School of Letter & Science, University of California - Davis, Davis, California, 95616, United States
2School of Finance, Guangdong University of Finance & Economics, Guang Zhou, 510220, China

These authors contributed equally.

*Corresponding author. Email: khcheng@ucdavis.edu
Corresponding Author
Haoyu Cheng
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.107How to use a DOI?
Keywords
Momentum Effect; Moving Average Strategy; President Joe Biden’s $1.9 Trillion Relief Bill; Strategies of Investing
Abstract

Since the epidemic outbreak and spread of COVID-19 had worsened the public’s expectation of the global economy, President Joe Biden tried to stimulate economic development with his $1.9 trillion relief bill. This research studied the performance and following effects of momentum strategies in the mid- and short-term, comparing relative returns of moving average investing strategies. As shown by the empirical results, the medium-term MA strategy performed relatively better compared to the short-term MA strategy subsequent to the relief bill, indicating the momentum effect was more pronounced with the longer-term MA strategy(proof of a more active market, which confirms the effectiveness of President Biden’s relief bill). Under the current situation of an active market and epidemic normalization, the investors should elastically adjust the portfolio and strategies, longing for the medium- and long-term momentum investment and releasing those with shorter maturity terms.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.107How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Haoyu Cheng
AU  - Wanqi Zheng
PY  - 2021
DA  - 2021/12/15
TI  - The Impact of $1.9 Trillion Covid Relief Bill on the Return by Different Moving Average Strategy
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 655
EP  - 661
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.107
DO  - 10.2991/assehr.k.211209.107
ID  - Cheng2021
ER  -