Investing Research Articles

…investors/traders may be able to discover economically significant views of informed traders on individual stocks by examining the degree to which the associated option prices smirk.

Is an adaptive marketplace extinguishing the January effect? In their June 2008 paper entitled “The Persistence of the Small Firm/January Effect: Is it Consistent with Investors’ Learning and Arbitrage Efforts?”, Kathryn Easterday, Pradyot Sen and Jens Stephan investigate whether the stock market has adapted over time to diminish the small firm/January effect. Using returns and… Keep Reading

…long/short equity hedge fund investors, if they have the flexibility, may be to able capture future alpha by chasing past alpha.

…assessing the valuation implications of earnings growth requires delving into the sources of that growth (investments in new products/capabilities versus improvements in efficiency).

…the average investor in U.S. equities could boost annual returns by roughly 0.67% by switching from an active strategy to a passive one.

…there is solid evidence that stock returns have a predictable component, captured at least partially by interest rate variables, across international markets.

Martin Goldberg sent a comment on our review of his stock market commentaries (“Martin Goldberg: Financial Sense?”). The following exchange presents Mr. Goldberg’s message without editing.

…mutual fund investors can enhance odds of beating passive benchmarks by focusing on funds with expense ratios that are among the lowest within category.

…pricing of out-of-the-money put options for the S&P 500 index indicates that investors expect 50% stock market crashes every 50 years.

…observations have implications for investing and trading from the perspectives of avoiding irrationality as individuals and exploiting the systematic irrationalities of others.