I'm trying to make a graph that shows how the return of major assets (S&P 500 index, % of 3Y T-notes, oil, gold, etc) move along with the world's expansion& recession cycle.
I looked into World Bank website but I'm not sure which measure I should use to represent the world's real business cycle.
FYI, you can select different GDP/PPP measures on the right pane.
Here are my questions:
- Should I use World data vs OECD data?
OECD countries take up the most part of the world's finance. Is using OECD good enough / more accurate?
- I think I should use GDP growth rate. But does it represent real, not nominal data?
I should use real GDP, right? But as you can see, the website only has one growth rate graph. So does that mean I have to make my own graph by downloading real GDP?
- There are GDP and PPP. Which one should I use?
What I want to do is showing the relationship of each asset's return with the world's economy. Since GDP is represented in USD, should I use PPP instead if I want to capture real economy without the effect of exchange rate?