Investing Research Articles

…company-specific news tends to decouple stock price behavior from the market, while the absence of news promotes co-movement.

…stock pickers tend to be optimists who should focus on objectivity in assessing the outcomes of their stock picking.

…the active management component of broadly diversified (closet index) mutual funds is generally expensive and ineffective. In comparison, hedge funds with 100% active management are not that pricey.

…individual investors tend to limit buying consideration, detrimentally, to those stocks that grab their attention via unusual trading or other news.

…good (bad) macroeconomic news is bad (good) for broad stock indices during expansions and good (bad) during recessions.

…informed traders prefer price certainty over execution certainty unless the value of their private information is about to expire.

…the stock market shows significant predictability (rather than perfect efficiency) in its reactions to news.

…principles of evolutionary biology such as competition, mutation, reproduction, and natural selection drives the evolution of financial markets.

…expect single-digit long-term returns from stocks.

…investor sentiment tends to “predict” the past.