Investing Research Articles

How should global investors assess country sovereign bond and equity risks? In his July 2025 paper entitled “Country Risk: Determinants, Measures and Implications – The 2025 Edition”, Aswath Damodaran examines country risk from multiple perspectives. To estimate a country risk premium, he considers direct and indirect measures of country government bond risk and country equity… Keep Reading

Do a relatively few stocks drive the alphas of many anomalies? In the May 2025 revision of his paper entitled “The Intersection of Expected Returns”, Austin Sobotka explores stock overlap among the portfolios of 164 cross-sectional asset pricing anomalies. Specifically, he each month: Ranks stocks into tenths (deciles) by each anomaly characteristic, lagged by one… Keep Reading

Do alternative “Cash” (deemed risk-free) instruments materially affect performance of the “Simple Asset Class ETF Momentum Strategy” (SACEMS)? Changing the proxy for Cash can affect how often the model selects Cash, as well as the return on Cash when selected. To investigate, we test separately each of the following yield and exchange-traded funds (ETF) as the… Keep Reading

Does adding an exchange-traded fund (ETF) or note (ETN) to the Simple Asset Class ETF Momentum Strategy (SACEMS) boost performance via consideration of more trending/diversifying options? To investigate, we add the following 24 ETF/ETN asset class proxies one at a time to the base set and measure effects on the Top 1, equally weighted (EW)… Keep Reading

Are all of the potentially trending/diversifying asset class proxies used in the Simple Asset Class ETF Momentum Strategy (SACEMS) necessary? Might one or more of them actually be harmful to performance? To investigate, we each month rank the nine SACEMS assets based on past return with one excluded (nine separate test series) and reform the… Keep Reading

Below is a weekly summary of our research findings for 8/11/25 through 8/15/25. These summaries give you a quick snapshot of our content the past week so that you can quickly decide what’s relevant to your investing needs. Subscribers: To receive these weekly digests via email, click here to sign up for our mailing list.

Do stocks of homebuilders, whose sales are particularly sensitive to interest rate changes, reliably lead the overall stock market? To check, we look at lead-lag relationships between monthly returns for SPDR S&P Homebuilders ETF (XHB) and for SPDR S&P 500 ETF Trust (SPY). Using monthly dividend-adjusted returns for XHB and SPY during February 2006 (inception… Keep Reading

How should retail investors view funds offering private equity opportunities? In his July 2025 paper entitled “Private Markets for the People? Or Just More People for Private Markets?”, Ludovic Phalippou assesses the push to expand private equity access to retail investors. He highlights risks embedded in current product design. Based on review of such offerings,… Keep Reading

Speculator level of interest (attention) is plausibly key to bitcoin price behavior. Does the level of online searching for “bitcoin” as a proxy for attention usefully predict bitcoin return? To investigate, we examine interactions between monthly worldwide search intensity for “bitcoin” as measured by Google Trends to represent speculator attention and monthly bitcoin returns. Using… Keep Reading

The Inflation Forecast now incorporates actual total and core Consumer Price Index (CPI) data for July 2025. The actual total (core) inflation rate is about the same as (about the same as) forecasted.