(University of the Witswatersrand, Johannesburg, 2023) Monyebodi, Khutso Joshua; Alovokpinhou, Sedjro Aaron
The paper investigates the impact of monetary policy shocks on investment styles in South Africa and the United States of America. The results indicate that monetary policy shocks significantly affect investment styles through transmission in the stock market. The findings show that value investing, and low volatility investing are the major safe havens for investors during monetary policy shocks or increasing interest rates. Results showed an inflation price puzzle in both countries, but inflation declined in the intermediary period. Our findings are robust in terms of investment styles' response to the monetary policy shock. The robust results showed consistency in how investment styles react to monetary policy shocks