Investing Research Articles

…observations have implications for investing and trading from the perspectives of avoiding irrationality as individuals and exploiting the systematic irrationalities of others.

…low (high) investor sentiment is especially indicative of future outperformance (underperformance) by the most speculative stocks.

…after accounting for trading frictions, medium-term long-short industry momentum strategies implemented via sector/industry ETFs do not offer abnormal returns.

…evidence from a small sample does not support a belief that ValueEngine’s market overview statistics meaningfully predict near-term behavior of the broad stock market.

…the media employs mostly sentimental shortcuts in assessing company performance, and the sentiments expressed are much more reflective of past trends than future performance.

…the reactions of aggregated commodity futures prices to surprises in macroeconomic indicators (up and down with inflation and real activity) are most reliable during recessions.

…trading fees, trader capital constraints and inclusion of open positions may substantially reduce or eliminate “Short Term Stock Selector” profitability as summarized by the offeror.

How do the typical portfolio and performance of self-directed investors differ from those of investors who employ financial advisors? Do financial advisors systematically add value by providing information to, and tempering the irrationalities of, individual investors? In his March 2008 paper entitled “The Influence of Financial Advice on Individual Investor Portfolio Performance”, Marc Kramer compares… Keep Reading

…individuals should carefully consider whether validated information or peer pressure is driving their investing/trading behaviors.

How can investors and speculators tell foolish, theoretical and practical investing/trading schemes apart? In his August 2002 paper entitled “Cranks, Academics and Practitioners”, former head of quantitative strategies at Goldman Sachs Emanuel Derman briefly circumscribes this question. He notes that: “…[A]s I skimmed through the crank file I found it hard to feel superior. Instead,… Keep Reading