Investing Research Articles

…several simple tests refute a belief that the past relative behavior of QQQQ and IWM reliably predicts reversion in their near-term future relative behavior.

…momentum trading strategies generally offer significantly positive alpha for large-capitalization U.S. stocks, but the strategies may not work during bear markets.

We evaluate here the market commentary of James Oberweis via Zacks.com since July 2002. James Oberweis is one of Zacks’ “pros” and a principal at Oberweis Securities Inc., “a boutique investment firm…with a particular focus on aggressive investors.” The firm’s investment strategy, which they call the “‘Oberweis Octagon,’ uses eight criteria to combine the best… Keep Reading

…investors/traders may be able to discover economically significant views of informed traders on individual stocks by examining the degree to which the associated option prices smirk.

Is an adaptive marketplace extinguishing the January effect? In their June 2008 paper entitled “The Persistence of the Small Firm/January Effect: Is it Consistent with Investors’ Learning and Arbitrage Efforts?”, Kathryn Easterday, Pradyot Sen and Jens Stephan investigate whether the stock market has adapted over time to diminish the small firm/January effect. Using returns and… Keep Reading

…long/short equity hedge fund investors, if they have the flexibility, may be to able capture future alpha by chasing past alpha.

…assessing the valuation implications of earnings growth requires delving into the sources of that growth (investments in new products/capabilities versus improvements in efficiency).

…the average investor in U.S. equities could boost annual returns by roughly 0.67% by switching from an active strategy to a passive one.

…there is solid evidence that stock returns have a predictable component, captured at least partially by interest rate variables, across international markets.

Martin Goldberg sent a comment on our review of his stock market commentaries (“Martin Goldberg: Financial Sense?”). The following exchange presents Mr. Goldberg’s message without editing.