Do Funds Focused on Just a Few Stocks Outperform?
December 5, 2007 - Mutual/Hedge Funds
…mutual funds with relatively few holdings tend to underperform, refuting the view that focus on a few ideas supports good stock picking.
December 5, 2007 - Mutual/Hedge Funds
…mutual funds with relatively few holdings tend to underperform, refuting the view that focus on a few ideas supports good stock picking.
December 4, 2007 - Economic Indicators
How do investors respond to the state of the U.S. federal fiscal deficit? In their August 2007 paper entitled “Fiscal Policy and Asset Markets: A Semiparametric Analysis”, Dennis Jansen, Qi Li, Zijun Wang and Jian Yang examine the relationships between U.S. fiscal policy and U.S. asset markets (stocks and bonds). Using monthly data for the… Keep Reading
December 3, 2007 - Volatility Effects
…big up and down days appear to have some tendency to cluster, with such volatility clusters associated more with market bottoms than with continuing downtrends.
November 30, 2007 - Big Ideas
…a few outlier trading days have a massive impact on long-term stock returns, and attempting to forecast which days is a fool’s errand.
November 29, 2007 - Economic Indicators
…stocks react to the surprise element in scheduled Federal Funds Rate announcements. There may be reliable trades in short-term continuation (reversal) of stocks after an initial spike down (up), especially for financial and information technology stocks.
November 28, 2007 - Miscellaneous
…many eminent economists and political scientists believe that prediction markets could offer significant benefits to society and that government should remove barriers to their productive use.
November 26, 2007 - Mutual/Hedge Funds
…recent success (failure) leads to risk-taking (risk-avoidance) among mutual fund managers.
November 21, 2007 - Fundamental Valuation
…firm accruals may be a good indicator of future stock returns when combined with a broader measure of firm financial health, or when defined as a fraction of earnings rather than assets.
November 16, 2007 - Economic Indicators
…investors can significantly outperform the broad U.S. stock market by rotating into cyclical (noncyclical) sectors when the Federal Reserve discount rate begins falling (rising).
November 15, 2007 - Volatility Effects
…sloppiness in applying statistics can lead to severe misestimates of variability. People should rely on definitions, not intuitions, in assessing volatility.