Investing Research Articles

In their June 2010 book Capital Rising: How Capital Flows Are change Business Systems All Over the World, authors Peter Cohan and Srinivasa Rangan mine lessons from 47 case studies to “describe the phenomenon of capital flows, present new ways to think about what causes them to rise and fall, and describe ways that our… Keep Reading

A reader commented and asked: “I searched your site for ‘insider’ and found very little investigation of a relationship between insider buys and stock price movement. Is this an area you could look at, classify and present to readers?”

A reader commented and asked: “I frequently read that stock prices are not normally distributed, and that by assuming they are, an investor will tend to underestimate market risk. One paper I read says their distribution is leptokurtic, a distribution that has a more acute peak around the mean (that is, a higher probability than… Keep Reading

…evidence indicates that investors may be able to exploit a significantly negative idiosyncratic risk premium among German stocks, robust to a broad set of portfolio specifications and controls.

…commodity traders may be able to enhance returns by focusing on those commodities for which term structures (yield curves) exhibit stability over past years.

…evidence from a limited test period suggests that conservative investing motives tend to outperform a speculative motive and that both news-augmented intuition and fundamental analysis tend to outperform technical analysis.

…evidence indicates that investors may be able to exploit consistency of past stock performance, independently of widely used momentum measures, via continuation over the intermediate term and reversal over the long term.

…evidence indicates that investors may be able to exploit a systematic relationship between the price impact of trading as measured by the return-to-turnover ratio and future stock returns.

Can investors count on stock markets reverting to some valuation benchmark? In their March 2010 paper entitled “Mean Reversion in International Stock Markets: An Empirical Analysis of the 20th Century”, Laura Spierdijk, Jaap Bikker and Pieter van den Hoek analyze reversion of 17 developed country stock market indexes to a valuation benchmark based on a… Keep Reading

…evidence from a fairly large recent sample of U.S. stocks indicates that traders may be able to suppress trading friction by systematically executing sales at the open and buys later in the trading day.