Investing Research Articles

…this research suggests that investors should be inclined to sell speculative U.S. stocks in late spring and buy them in the fall.

…reasonably isolated attention-grabbing events are opportunities for profitable day trading.

In his June 2004 paper on “What Are Stock Investors’ Actual Historical Returns”, Ilia Dichev examines stock market capital inflows and outflows to determine how well investors really perform compared to buy-and-hold returns. He concludes that:

…investing in actively managed funds is a loser’s game. Professional fund managers cannot systematically find and exploit market inefficiencies.

…21st-century investors should curb their exuberance.

…short selling is more effective at buffering exuberance for individual stocks than for the overall market.

…mutual fund inflows naively chase past returns.

…the media constitute a possibly destabilizing element, since they support the continuation and reinforcement of states of disequilibrium, or maybe even trigger them.

…investor emotions drive market volatility, but there is an asymmetry to fear and greed.

…individual investors should be wary of investing in stocks that are the top mutual fund holdings.