Weekly Summary of Research Findings: 8/26/13 – 8/30/13
August 30, 2013 • Posted in Weekly Summary
Below is a weekly summary of our research findings for 8/26/13 through 8/30/13. These summaries give you a quick snapshot of our content the past week so that you can quickly decide what’s relevant to your investing needs.
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Monetary Policy and Stocks in Europe
Evidence suggests that monetary policy shifts do affect investor allocations to stocks and cash, and thereby the return on stocks.
Stock Returns Around Labor Day
Best guess is that any anomalous U.S. stock market behavior around Labor Day is a relatively strong return one trading day before the holiday and high volatility the day after, but noise generally dominates and recent data does not support belief in a return anomaly.
Hedge Fund Benchmark Biases
Evidence suggests that hedge fund indexes overstate annual industry performance by about 0.5% due to hedge funds that cease voluntary reporting to commercial databases.
Processing News to Predict Stock Returns
Evidence indicates that more complex news sentiment analysis tools (such as the Thomson-Reuters neural network) predict larger, more lasting gross stock returns than do simpler sentiment measurement tools.
Stock Quality and Future Returns
Evidence indicates that high-quality stocks (based on profitability, growth, safety and payout) offer strong and consistent gross performance.