Just Protecting Their Investing/Trading Reputations?
February 22, 2006 - Mutual/Hedge Funds
…reputational concerns of institutional fund managers may create mispricing opportunities for other investors.
February 22, 2006 - Mutual/Hedge Funds
…reputational concerns of institutional fund managers may create mispricing opportunities for other investors.
February 16, 2006 - Animal Spirits, Individual Investing
…ormal research on the emotions of investing suggests that mood affects investor behavior, but it does not offer much in the way of practical trading edges. Keeping one’s own emotions in check does seem key to outperforming as a trader.
February 15, 2006 - Momentum Investing, Volatility Effects
…traders can outperform by entering positions when volatility spikes and then taking profits quickly.
February 13, 2006 - Animal Spirits, Individual Investing
…rapid meme detection via Internet-enabled technologies may offer an edge for tuned-in traders.
February 9, 2006 - Fundamental Valuation
…investors/traders may pivot on earnings, but appear to react to the inflation rate rather than interest rates.
February 6, 2006 - Economic Indicators
…equity investors should be contrarian when considering economic forecasts. Bad is good.
February 3, 2006 - Size Effect
…the empirical evidence for the size effect is superficially consistent, but frail at closer inspection. The size effect is not “dead,” but it is ailing.
February 2, 2006 - Size Effect, Value Premium
…the bid-ask spread, transaction costs and the price impact of trading make the value premium in small-capitalization stocks hard to capture. The prey is generally too elusive for mutual funds and indexes.
January 26, 2006 - Volatility Effects
…exceptionally volatile stocks are on average inferior investments, or at least trades. There is no reward for this kind of risk, and presently no explanation for this effect.
January 24, 2006 - Fundamental Valuation
…practitioners who use the Fed Model are simpletons. The model is theoretically implausible and empirically challenged.