Investing Research Articles

…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.

…investors should augment dividends with measures of stock repurchases and issuances when relating equity yields to expected returns.

…there is no reliable weather-sun-moon risk premium.

…implied or expected volatility (VIX) should tentatively be viewed as a fifth factor in modeling stock returns because it affects them both directly in a multi-factor model and indirectly through the other risk factors.

…only about 20% of all hedge funds have produced after-fee returns that clearly beat those of statistical replicants that mechanically trade a basket of liquid futures contracts.

As the esteemed, erudite chorus of the downside constantly reminds us, Bear Claus…

…analysts tend to walk their earnings forecasts down as release of actuals approaches, and this walk-down effect is stronger for analysts that have good relationships with management.