Investing Research Articles

…firms sell (buy back) company financial assets when their stocks are overvalued (undervalued), and analysts misinterpret or underreact to these actions. Investors should focus on the actions of corporate executives and not the forecasts of analysts.

…investors can enhance returns by combining value and momentum styles, leaning toward momentum when the yield curve is normal and value when the yield curve is inverted.

…investors/traders who check investment performance frequently should make mental adjustments for pain-avoidance bias.

…investors should focus on return on investment as the driver of investment returns and earnings yield as the indicator of how large the returns should be.

…investors/traders generally underreact to the sentiment expressed by executives in company annual reports.

Our Guru Grades section ranks a group of 29 stock market experts according to our assessments of the accuracy of their stock market forecasts. Since Jack Schannep has been in the upper tier of the list since inception, we asked him to encapsulate his thinking on market timing as a guest entry for this blog…. Keep Reading

…investors in large capitalization stocks are likely accepting a worldwide equity premium. Local (and identifiable) pockets of reward-for-risk involve small capitalization stocks.

…both the long-term and short-term behaviors of the VIX appear to have some value as an indicator of future stock returns, especially for high-beta stocks.

…when experts cite overall stock market volatility as an indicator of future market behavior, they are only half right, which is about the same as wrong.

In his article entitled “The Seer-Sucker Theory: The Value of Experts in Forecasting” from the June/July 1980 issue of Technology Review, Scott Armstrong investigates the general supply of and demand for expertise across several disciplines. Based upon his survey of decades of research in multiple fields (including financial markets, psychology, health care, politics, sports), he… Keep Reading