Investing Research Articles

…stock market P/E and presidential approval rating are significantly intertwined.

…stock pickers may want to focus on stocks with high idiosyncratic volatility.

…new mutual funds appear to enjoy initial outperformance by taking on innovative risk.

…gain-loss spread (expected gain minus expected loss) is a simple, intuitive measure of investment risk at least as useful as standard deviation.

…investors seem to have left the Fed model for dead.

…momentum and contrarian ETFs based on long-only partitions of broader indexes might offer individual investors practical and diversified access to the momentum factor, and to the associated longer-term contrarian reversal.

…lifecycle investors will generally achieve greater terminal wealth using interim success-based dynamic stocks/fixed income allocation rules than using pre-determined shifts away from stocks and toward fixed income.

…spectral analysis confirms the probable existence of U.S. stock market cycles that coincide with election cycles.

…investors/traders may be able to enhance market timing results by focusing on the most predictable styles/industries (for example, via exchange-traded funds).

…hedge fund investors should recognize that many funds generate “alpha” by taking liquidity risks that make converting assets to cash difficult.