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Investing Research Articles

3239 Research Articles

Trade Against Overnight Moves?

…the overnight return on individual stocks is a contrary indicator for next-day returns, but individual “outside” traders may not be able to exploit this tendency.

Classic Paper: Any Excess Returns from Investment Newsletters?

…newsletters on average offer investors/traders average performance, without the broad diversification benefit of mutual funds.

Combining Value Indicators with Stock Repurchasing

…an exchange traded fund that focuses on value stocks with repurchase activity would be an attractive long-term investment vehicle.

Reclama from Jack Schannep

Jack Schannep, editor of The DowTheory.com, has several times requested that we reconsider parts of our assessment of his specific stock market forecasts, as follows:

Emergent Size-Value Patterns of Noise?

…the value premium and the size effect are real manifestations of emergent patterns of noise across large groups of stocks.

Good Deals in Broad Market Index Options?

…investors/traders are generally willing to overpay for insurance and leverage via options, but only the market makers can consistently exploit this willingness.

Making Money with Options Based on Superior Volatility Forecasts

…a market inefficiency with respect to volatility expectations for individual stocks may provide a means to beat the market by using options to trade volatility.

The Options Trading Landscape

…investors/traders write (sell) more options than they purchase and deal much more in calls than in puts. Call writing is mostly hedging, while call purchasing and put writing are mostly speculations on stock prices.

Are Individual Investors Entrepreneurs? If So…

…the persistence of success among some serial entrepreneurs demonstrates that success is not all luck. By similarity, investors/traders who persistently outperform their peers likely have skills in developing superior information about the market.

Diminishing Returns from Hedge Funds? Or Not?

…it seems that hedge funds overall are not exhausting the supply of alpha offered by other players in worldwide equity markets.