Investing Research Articles

…the greatest returns are to be found on average among stocks least widely held by institutions.

…calendar effects used to be but mostly aren’t any more.

…Professor Sornette’s attempt to model one equity market via diligent analysis of similarities to another equity market during a different time does not work, perhaps because the model is simplistically behavioral or because randomness dominates predictability.

…because mean reversion of price-to-book ratios outpaces reinvestment of earnings, value stocks outperform growth stocks.

…Warren Buffett’s consistently high level of outperformance challenges the Efficient Markets Hypothesis.

…sophisticated and experienced investors/traders avoid most of the bad effects of the disposition bias. Trading practice helps.

…noise generally swamps signal (true outperformance or underperformance) in financial markets, and in life generally.

…conflicts from the brokerage business (not investment banking) play an important role in shaping analyst forecasting behavior.

…focusing on stocks with both high six-month momentum and rapidly increasing six-month momentum offers significant excess returns.

In their August 2005 paper entitled “Value Versus Growth: Stochastic Dominance Criteria”, Abhay Abhyankar, Keng-Yu Ho and Huainan Zhao apply stochastic dominance techniques to assess the relative performance of value and growth investment strategies in U.S. equity markets over the past half century. These techniques: (1) compare entire return distributions (not just means or medians);… Keep Reading