Bear Claus
February 21, 2007 - Animal Spirits, Cartoons
As the esteemed, erudite chorus of the downside constantly reminds us, Bear Claus…
February 21, 2007 - Animal Spirits, Cartoons
As the esteemed, erudite chorus of the downside constantly reminds us, Bear Claus…
February 20, 2007 - Fundamental Valuation, Investing Expertise
…analysts tend to walk their earnings forecasts down as release of actuals approaches, and this walk-down effect is stronger for analysts that have good relationships with management.
February 16, 2007 - Investing Expertise
…naive customers for services with outcomes for which it is hard to distinguish skill from luck will attract and sustain a diverse set of quacks.
February 14, 2007 - Investing Expertise, Sentiment Indicators
…the stocks of companies least admired by the ostensibly well-informed may well outperform the stocks of the companies most admired.
February 13, 2007 - Mutual/Hedge Funds
…the small positive alpha of hedge funds in aggregate is likely to move toward the negative alpha of the mutual fund industry in the coming years.
February 9, 2007 - Sentiment Indicators
Is aggregate investor sentiment a useful trading indicator? For what kinds of stocks is sentiment trading most likely to work? In their December 2006 paper entitled “Investor Sentiment in the Stock Market”, Malcolm Baker and Jeffrey Wurgler summarize a top down approach to addressing these questions, focusing on the measurement of aggregate sentiment and its… Keep Reading
February 8, 2007 - Animal Spirits, Cartoons, Investing Expertise
When the market trend challenges their beliefs, what do we hear from market “experts?”
February 7, 2007 - Individual Gurus
The Financial Forecast Center (FFC) forecasts the average value by month for the S&P 500 index for the current month and the next five months , including fairly large error ranges for 50% and 90% confidence levels. FFC’s “forecasts are generated in-house using artificial intelligence. The forecast models are 100% quantitative and use a global,… Keep Reading
February 1, 2007 - Animal Spirits, Fundamental Valuation
…the authors find that both market friction and investor irrationality play substantial roles in the pricing of stocks.
January 29, 2007 - Commodity Futures
…commodity futures in aggregate offer a long-term return comparable to that of stocks, with less downside risk and a substantial diversification benefit for a stock/bond portfolio.