Investing Research Articles

…The Ivy Portfolio offers investors a well-reasoned, well-documented, easily understood and easily implemented approach to long-term, self-directed portfolio management based on disciplined asset class diversification enhanced by momentum. While investors should expect to underperform the modeled level of returns, the approach has considerable support from formal research.

…a portfolio that combines value and momentum strategies across global equity markets and other asset classes may offer investors relatively high returns with low volatility.

…mutual fund investors are more likely to find outperformance in funds that emphasize stock selection rather than general market timing.

…evidence suggests that Google search frequency data may disproportionately measure the attention of naive investors/traders and therefore indicate some temporary price pressure for small capitalization stocks.

…evidence suggests that simple win-loss percentages from recent trades influence the future trading behavior of individuals, especially inexperienced traders, far more than does past bottom-line level of profitability of trades. Individual traders may want to consider whether they are motivated more by being right than by making money.

…investors should not view the mutual diversification power of stocks and bonds as constant for planning horizons of less than a complete business cycle.

…limited evidence from out-of-sample tests of TradingMarkets.com 2-day RSI trading rules for ETFs are mixed regarding a belief that they are reliably profitable. The reported in-sample results may have substantial data snooping bias.

…the Morningstar mutual fund rating system can probably help investors avoid funds with the worst future performance.

…the combined actions of information traders and trend followers typically eliminate 15-30% of the difference between market valuation and fundamental valuation in a year.

…limited evidence continues to suggest that, in aggregate, stock market gurus tend to anchor on bullish or bearish positions, regardless of actual market trends.