Measuring Investor/Trader Risk Aversion
September 25, 2006 - Equity Options, Volatility Effects
…when investors/traders are depressed, as measured by the gap between implied volatility and historical volatility, so are stock prices.
September 25, 2006 - Equity Options, Volatility Effects
…when investors/traders are depressed, as measured by the gap between implied volatility and historical volatility, so are stock prices.
September 22, 2006 - Individual Investing, Mutual/Hedge Funds
…mutual fund investors would generally be better off with a buy-and-hold rather than buy-and-sell-and-buy-and-sell investing strategy.
September 21, 2006 - Technical Trading
…the incorporation of folk medicine by pharmacology offers a model for bringing technical analysis into the financial economics fold.
September 20, 2006 - Animal Spirits, Mutual/Hedge Funds
…investing based on the principles of behavioral finance is indistinguishable from value investing, producing similar raw excess returns.
September 19, 2006 - Economic Indicators
…stock market booms arise from the confluence of strong economic growth and low inflation. Excessive (?) monetary policy reaction to rising inflation kills the booms.
September 18, 2006 - Technical Trading
…technical trading is more likely to be successful when applied to small-capitalization and illiquid stocks.
September 14, 2006 - Animal Spirits, Fundamental Valuation
…past research indicates that there may be a good short-term price trade (but watch out for frontrunning) and a good longer-term volatility play for forced resignation of a CEO with replacement by an outsider.
September 12, 2006 - Animal Spirits
…investors/traders who take the advice of spam stock touts are likely to lose big and fast.
September 7, 2006 - Size Effect, Value Premium
…small capitalization value investing works by systematically buying negative noise and selling positive noise.
September 6, 2006 - Mutual/Hedge Funds
…equity hedge funds generate alpha by stock picking, not market timing.