Investing Research Articles

...stock market booms arise from the confluence of strong economic growth and low inflation. Excessive (?) monetary policy reaction to rising inflation kills the booms.

...technical trading is more likely to be successful when applied to small-capitalization and illiquid stocks.

...past research indicates that there may be a good short-term price trade (but watch out for frontrunning) and a good longer-term volatility play for forced resignation of a CEO with replacement by an outsider.

...investors/traders who take the advice of spam stock touts are likely to lose big and fast.

...small capitalization value investing works by systematically buying negative noise and selling positive noise.

...equity hedge funds generate alpha by stock picking, not market timing.

...hedge funds in aggregate perform best around the turn of the year and during odd-numbered years. This seasonality is little different from that of the overall stock market.

...as a corollary to mean reversion of firm profitability, asymmetries in small-big and value-growth stock migrations drive the size effect and the value premium.

...relatively simple clones based on exchange-traded instruments perform well enough to be considered as liquid, transparent, scalable and low-cost alternatives to hedge funds for many fund styles.

...operating earnings forecasts are the best simple indicator of stock market valuation.

...high short interest alone does not predict abnormally low future returns. Rather, high short interest for stocks that are particularly risky to trade (high idiosyncratic volatility) predicts low future returns.

...there are a lot of twists and turns to momentum strategy returns. Momentum players should pay attention to the subtleties.

...a pro-Democrat/anti-Republican bias in the mainstream media may affect the economic risk perception of some investors/potential investors, thereby affecting stock valuations.

...media sentiment predicts small surprises in earnings and stock prices, which investors quickly incorporate into stock prices. However, transaction costs offset the surprise returns.

Can traders exploit irrational reactions to Jim Cramer’s stock recommendations by viewers of CNBC’s Mad Money? In their March 2006 paper entitled “Is the Market Mad? Evidence from Mad Money“, Joseph Engelberg, Caroline Sasseville and...

...the value of a company's equity depends on its future cash flows (derived from the company's growth rate and return on investment) and on the required return on equity.

...mutual fund investors should favor funds having ownership stakes, which directly align managerial incentives with investor goals.

...economic activity generally transcends politics in politically free societies.

...investors should generally ignore advertising in choosing mutual funds; they should consciously control their fund search methodologies to achieve rational decisions.

We evaluate here the market commentary of Ben Zacks over the period June 2002 through January 2005. Ben Zacks is a co-founder of Zacks Investment Research and Senior Strategist and Portfolio Manager at Zacks Wealth...

...stock message boards accelerate information dissemination and maybe analysis, but they do not reliably reveal new information (lots of opinions and little or no private information). Message board sentiment does not predict stock returns.

...the claimed past performance of the New America Index is probably overstated with respect to realistic expectations for actual trading of the stocks in it.

...investors/traders should consider a courtroom-like discipline in determining the value of a guru's advice. It may be that very few stock market gurus would qualify as expert witnesses.

...even sophisticated hedge fund investors could improve their returns by relying more on homework and less on gurudom.

...the significant concentration of excess stock market returns around the turns of calendar months is a long-standing and persistent effect.