Investing Research Articles

…portfolios built using aggregate analyst recommendations may produce gross outperformance, but transaction costs absorb excess returns. Moreover, privileged investors get the jump on analyst-driven trades.

…the Fed Model has worked pretty well starting about 1960, with interest rates since playing a key role in stock valuation.

…individual investors may be able to outperform through determined reinvestment of dividends and exploitation of capital gains mean diversion and reversion.

…the gap between the S&P 500 earnings yield and Treasury instrument yields has some market timing value, with short spreads outperforming long spreads.

…stock market returns fluctuate away from, and revert to, a running mean on a roughly annual basis.

…investors should avoid stocks with high short interest ratios.

…individual investors systematically show attention-driven herd-like behaviors.

…a high level of trading activity usually underperforms.

…just because there is a crowd of traders does not mean there is wisdom.

…Burton Malkiel continues to believe that the stock market is inexploitably efficient.