Investing Research Articles

…conflicts from the brokerage business (not investment banking) play an important role in shaping analyst forecasting behavior.

…focusing on stocks with both high six-month momentum and rapidly increasing six-month momentum offers significant excess returns.

In their August 2005 paper entitled “Value Versus Growth: Stochastic Dominance Criteria”, Abhay Abhyankar, Keng-Yu Ho and Huainan Zhao apply stochastic dominance techniques to assess the relative performance of value and growth investment strategies in U.S. equity markets over the past half century. These techniques: (1) compare entire return distributions (not just means or medians);… Keep Reading

…individual investors are systematic stock trading losers; institutions, systematic winners. Individual investors may well be relatively overconfident (despite lack of investing education) and thrill-seeking compared to institutional investors.

…individual investors should exercise special care when considering the repurchase of stocks previously owned or the purchase of more of stocks already owned to ensure that their intellects are in charge of their feelings.

…the average investor in the U.S. equities will have difficulty avoiding relatively poor returns during the summer. They should focus on the winter months.

…while changes in bond yields have short-term effects on stock prices, valuation ratios better forecast long-term stock market behavior.

…the quality (more than the quantity) of emerging earnings moves corporate officers to adjust repurchasing and personal trading of company stock.

…individual investors can look at their own trading patterns for clustering to assess whether they act like big picture or little picture traders.

…while there is a weak negative correlation between aggregate downward earnings guidance and monthly stock market returns, the stock market probably leads the guidance.