Investing Research Articles

As suggested by a reader, we evaluate here the intermediate-term S&P 500 index calls of Tim Ord via MarketWeb since 1/20/06. Tim Ord is is president, editor and publisher of The Ord Oracle, “devoted to the practice of supply and demand trading” using “a new kind of charting program designed for showing supply and demand… Keep Reading

…the portfolio returns of “Strategy Lab” participants since late 2001 vary widely, but aggregate results offer some support for the belief that experts on average can consistently outperform the broad stock market.

Is firm total asset growth rate an independently valuable indicator of future stock returns? In their January 2009 paper entitled “The Asset Growth Effect in Stock Returns”, Michael Cooper, Huseyin Gulen and Michael Schill review the evidence for a strong asset growth effect in U.S. stock returns unexplained by other widely cited effects. Using firm… Keep Reading

…stocks of companies with relatively high (low) cash-to-asset ratios tend to outperform (underperform).

…evidence from limited tests does not support a belief that the Mutual Fund Research Newsletter quarterly asset class allocation recommendations have any market timing value.

…large hedge funds contend with significant diseconomies of scale, and consequently underperform comparable small hedge funds.

…equity investors may want to alternate between momentum and value investing styles as the overall stock market varies from low-volatility to high-volatility states.

…the profitability of pairs trading relates strongly to differences between paired stocks regarding: (1) the speed with which news is likely to diffuse across the shareholder bases; and, (2) the frictions which probably inhibit acting on this news.

…equity traders may find the trading rules in Short Term Trading Strategies That Work interesting, but they should consider potential limitations in the supporting analyses and recognize the challenge of reliably extracting economic value from such rules with trading frictions in a real, continuously managed series of trades.

…the current environment may challenge the lifetime experience of most investors regarding the relationship between the inflation rate and stock returns.