GENERALIZED FISHER HYPOTHESIS VALIDITY FOR CANADA, UK, AND SUISSE STOCK MARKETS: EVIDENCE FROM PANEL ARDL MODELS

In this paper we propose a decision support tool for the investor in terms of asset allocation. The key question is to know whether equities are perfect hedge against inflation if either invest only one market or go all considered markets. We chose three democratic countries having common monetary policy based on Inflation rate stabilization targeting (including Canada, UK, and Suisse) over period 1999M01-2018M04. see how stock return evolution related Pre, during, Post 2008 Global financial crisis (GFC). Then, some dynamic version Generalized Fisher hypothesis (GFH) models explored by univariate panel autoregressive linear (ARDL) frameworks. conclude that during period, being Suisse Canadian market, investors can have important abnormal gains. Then including UK portfolio allows limit losses caused alone.