Investing Research Articles

…evidence from a fairly large recent sample of U.S. stocks indicates that traders may be able to suppress trading friction by systematically executing sales at the open and buys later in the trading day.

As suggested by a reader, we evaluate here the stock market commentary of Curt Hesler since January 2003. Curt Hesler has published Professional Timing Service since 1978, noting that: “One thing I have learned is that you must be cautious to be successful.” He makes past issues of his bi-monthly newsletter, usually including an outlook… Keep Reading

…Scott Phillips’ Buying at the Point of Maximum Pessimism offers six long-term investing themes based on extrapolation of some major global sociopolitical and economic trends.

How much individual investing is lottery-like, just hoping for a big score with no analysis? In their June 2010 paper entitled “Natural Experiments on Individual Trading: Substitution Effect Between Stock and Lottery”, Xiaohui Gao and Tse-Chun Lin relate individual trading activity to national lottery jackpot size in Taiwan. Using twice-weekly lottery jackpots and contemporaneous Taiwan… Keep Reading

“I found Investors FastTrack via a search last night. Do you know anything about them?”

…evidence indicates that sophisticated investors appear to recognize the importance of trading friction to net return and gauge holding periods accordingly.

…the burden of assessing the value of Tom DeMark’s indicators and associated services is heavily on the side of the prospective buyer.

…evidence suggests that frequent, low-cost traders may be able to offset part of trading frictions by exploiting daily patterns in stock returns.

A reader suggested: “With the annual Russell rebalancing coming later this month, maybe you could post some profitable trading strategies.” A search of the Social Science Research Network (SSRN) for “index rebalancing” and “index reconstitution” and “Russell rebalancing” and “Russell reconstitution” locates the following research (in reverse posting chronology):

…evidence from simple tests does not support a belief that clusters of daily volatility reliably signal poor future returns.