Investing Research Articles

…there is an “information risk premium” such that stocks not covered by the news media yield significantly higher future returns than stocks heavily covered, even after accounting for other widely used risk factors.

…hedge fund managers seem to be no better at long-equity investing than mutual fund managers; they do not outperform the market.

…share repurchase announcements persist as good indicators of stock undervaluation, most significantly amplified by poor returns over the prior six months.

…the sentiment of institutional (private) investors probably has some (no) value in predicting stock market returns over a six-month horizon.

…an investment strategy based on extreme P/Es calculated with an extended earnings history and concentrated by stripping out market, industry and style factors offers extreme returns.

…there is a cycle of cash flow between companies and investors, as the former first sell shares, then buys the shares of other companies and finally buys back their own shares.

…Herb Greenberg successfully identify stocks that, on average, underperform the market. However, the high variability of returns for these stocks continues to make trading on “Greenberg mentions” extremely risky.

…institutional herding on hope and fear drives overvaluation (undervaluation) of growth (value) stocks, leading to their future reversals of fortune.

…the stock return momentum effect wasn’t there, then it was there for a long time, and now it’s gone.

…it is very difficult for individual investors to beat the market. Infrequent trading and lower-risk holdings have been key to relative outperformance since 2000.