Investing Research Articles

…executives of public companies use optimistic and pessimistic language to communicate credible information about expected future firm performance, and the market responds to this information.

…this synthesis of the theories of physical entropy, information processing and evolution offers an interesting perspective on investor psychology and financial market behavior.

…aggregate distribution of analyst recommendations is a coincident or lagging stock market indicator, and those firms that appear to be most realistic (honest) with their distribution of recommendations provide the best advice.

…stock market information warfare may be a winning strategy.

Is this how a savvy hedge fund manager plays the game? First, get cozy with other fund managers, financial market research firms and the financial media. Then “orchestrate” the attention paid to a company in which the manager’s fund has taken a position? Here’s a picture, with some links to relevant allegations and news/commentary…

…reputational concerns of institutional fund managers may create mispricing opportunities for other investors.

…ormal research on the emotions of investing suggests that mood affects investor behavior, but it does not offer much in the way of practical trading edges. Keeping one’s own emotions in check does seem key to outperforming as a trader.

…traders can outperform by entering positions when volatility spikes and then taking profits quickly.

…rapid meme detection via Internet-enabled technologies may offer an edge for tuned-in traders.

…investors/traders may pivot on earnings, but appear to react to the inflation rate rather than interest rates.