Below is a weekly summary of our research findings for 5/6/19 through 5/10/19. 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.
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- “Sell in May” Over the Long Run
Evidence from rough modeling over the long run suggests that U.S. stocks generally do better during November-April than during May-October, but (with reasonable assumptions about return on cash, dividends and trading frictions) buying and holding stocks easily outperforms a “Sell in May” market timing strategy. - Does the Turn-of-the-Month Effect Work for Sectors?
Evidence from simple tests on recent samples supports belief that the turn-of-the-month effect holds for major stock market sectors. - Does the Turn-of-the-Month Effect Work for Asset Classes?
Evidence from simple tests on recent samples supports belief that the turn-of-the-month effect holds for equities in general and commodities, but not for bonds or gold. - Home Prices and the Stock Market
Evidence from the past several decades indicates little interaction between the U.S. stock market and the U.S. residential real estate market. The two asset classes are mutually diversifying. - Automation Bias Among Individual Investors
Survey results indicate that individual investors are much more comfortable with advice from algorithmic models than from reputable stock brokers.
