Investing Research Articles

Do stocks exhibit predictable volatility behavior near their 52-week highs and lows? In their March 2010 paper entitled “How the 52-Week High and Low Affect Beta and Volatility”, Joost Driessen, Tse-Chun Lin and Otto Van Hemert analyze whether a stock’s beta, return volatility and implied volatility change as its price approaches a 52-week high or… Keep Reading

There is a stream of research that indicates three phases of price dynamics in equity markets, reaction – momentum – reversion, that operate over different horizons…

…evidence indicates that the sign (much more than size of profit/loss) of recent trades influences the future trading behavior of individual investors. This influence is adverse to overall profitability.

…investors may be able to streamline the search for anomalous returns by focusing on two factors: (1) firm size, representing the rational risk of failure; and, (2) a seasonal factor related to operating profit and buybacks-secondaries, representing irrational mispricing.

There is not much formal research on Master Limited Partnerships…

…evidence indicates that stock return predictions based on past volatility are sensitive to the interval of measurement. Measurement over long intervals supports the conventional reward-for-risk belief, while measurement at short intervals turns this belief upside down.

…evidence suggests that an investing strategy that combines past return, earnings and revenue momentums outperforms strategies based on only one or two of these momentums.

…evidence from pricing of call options on individual stocks supports belief in a volatility risk premium that increases with stock volatility and decreases with firm market capitalization, but only investors who keep trading frictions low can exploit the variations in premium.

We evaluate here the stock market commentary of Dennis Slothower via Zacks.com and MarketWatch.com since June 2002. Dennis Slothower, who is editor of the Stealth Stocks and On the Money newsletters. According to Stealth Stocks, Mr. Slothower “is an absolute master at taking into account how world news – the true ‘market-moving events’ – will… Keep Reading

As suggested by a reader, we evaluate here the Forbes.com commentary of Gary Shilling regarding the broad U.S. stock market since the beginning of 2000. Gary Shilling is founder of A. Gary Shilling & Company, Inc., which uses a “top down” approach, “emphasizing the major themes, developed from our economic, financial, and political analysis, that… Keep Reading