A Minimalist Model for the Toronto Stock Exchange
This model seeks to explain the behavior of the composite index of the Toronto Stock Exchange in a concise, minimalist fashion. The Toronto Stock Exchange is of unusual interest because it is the primary equity exchange for America's largest trading partner, and the behavior of its composite index, though similar to that of the New York Stock Exchange, cannot be explained by direct correlation to the NYSE.
The TSE-300 (the composite index of the 300 largest-capitalized stocks listed on the Toronto Stock Exchange) will be examined with respect to the Dow Jones Industrial Average, the NASDAQ composite index, several measures of personal and government borrowing and debt, and Canadian measurements of consumer sentiment and monetary conditions.
Theory of the Model >>