Investing Research Articles

...evidence indicates that hedge fund investors may be able to gain an edge by limiting consideration to funds with recent corporate releases but no other recent media coverage.

...evidence indicates that investors can capture a large portion of Berkshire Hathaway's long-term outperformance by mimicking holdings described in the company's SEC disclosures, because many other large traders do not.

...evidence from limited tests suggests that online search activity may help predict which recent winning and losing stocks will continue winning and losing.

...investors may be able to identify stocks inclined to outperform and underperform over the long term based on the degree to which their short-term returns track market and industry returns.

In their June 2010 book Capital Rising: How Capital Flows Are change Business Systems All Over the World, authors Peter Cohan and Srinivasa Rangan mine lessons from 47 case studies to “describe the phenomenon of...

A reader commented and asked: “I searched your site for ‘insider’ and found very little investigation of a relationship between insider buys and stock price movement. Is this an area you could look at, classify...

A reader commented and asked: “I frequently read that stock prices are not normally distributed, and that by assuming they are, an investor will tend to underestimate market risk. One paper I read says their...

...evidence indicates that investors may be able to exploit a significantly negative idiosyncratic risk premium among German stocks, robust to a broad set of portfolio specifications and controls.

...commodity traders may be able to enhance returns by focusing on those commodities for which term structures (yield curves) exhibit stability over past years.

...evidence from a limited test period suggests that conservative investing motives tend to outperform a speculative motive and that both news-augmented intuition and fundamental analysis tend to outperform technical analysis.

...evidence indicates that investors may be able to exploit consistency of past stock performance, independently of widely used momentum measures, via continuation over the intermediate term and reversal over the long term.

...evidence indicates that investors may be able to exploit a systematic relationship between the price impact of trading as measured by the return-to-turnover ratio and future stock returns.

Can investors count on stock markets reverting to some valuation benchmark? In their March 2010 paper entitled “Mean Reversion in International Stock Markets: An Empirical Analysis of the 20th Century”, Laura Spierdijk, Jaap Bikker and...

...evidence from a fairly large recent sample of U.S. stocks indicates that traders may be able to suppress trading friction by systematically executing sales at the open and buys later in the trading day.

As suggested by a reader, we evaluate here the stock market commentary of Curt Hesler since January 2003. Curt Hesler has published Professional Timing Service since 1978, noting that: “One thing I have learned is...

...Scott Phillips' Buying at the Point of Maximum Pessimism offers six long-term investing themes based on extrapolation of some major global sociopolitical and economic trends.

How much individual investing is lottery-like, just hoping for a big score with no analysis? In their June 2010 paper entitled “Natural Experiments on Individual Trading: Substitution Effect Between Stock and Lottery”, Xiaohui Gao and...

"I found Investors FastTrack via a search last night. Do you know anything about them?"

...evidence indicates that sophisticated investors appear to recognize the importance of trading friction to net return and gauge holding periods accordingly.

...the burden of assessing the value of Tom DeMark's indicators and associated services is heavily on the side of the prospective buyer.

...evidence suggests that frequent, low-cost traders may be able to offset part of trading frictions by exploiting daily patterns in stock returns.

A reader suggested: “With the annual Russell rebalancing coming later this month, maybe you could post some profitable trading strategies.” A search of the Social Science Research Network (SSRN) for “index rebalancing” and “index reconstitution”...

...evidence from simple tests does not support a belief that clusters of daily volatility reliably signal poor future returns.

...evidence from laboratory experiments indicates that simulated experience, especially with graphical display of results, instills a more realistic grasp of investment choices than does exposure to numerical statistics.

...investors may be able to use simple trend-following rules to enhance returns from a strategy designed to capture a combination of the equity risk premium from stocks and the volatility risk premium from short options.