Can A Brutal Stock Market Make You Physically Sick?
Worrying About the Stock Market: Evidence from the Hospital Admissions Engelberg and Parsons A version of the paper can be found here. Want a summary [...]
Loosening Short Sale Constraints Makes Markets More Efficient
The Causal Effect of Limits to Arbitrage on Asset Pricing Anomalies Chu, Hirshleifer and Ma A version of the paper can be found here. Want [...]
Even God would get fired as an Active Investor
Perfect foresight has great returns, but gut-wrenching drawdowns. In other words, an active investor who was clairvoyant (i.e. "God"),[ref]We mean no offense by the use [...]
The most concise explanation of behavioral finance I’ve ever seen
One of the most overused-- and misunderstood -- terms I've seen used by finance practitioners is "behavioral finance." Many professionals consider themselves to be "behavioral [...]
How Does Analyst Optimism Affect Momentum Strategies?
Analyst Optimism and Stock Price Momentum Li, Lockwood and et al. A version of the paper can be found here. Want a summary of academic papers [...]
Following “Opportunistic insiders” Earns over 1% Monthly Alpha…
Opportunism as a Managerial Trait: Predicting Insider Trading Profits and Misconduct Ali and Hirshleifer A version of the paper can be found here. Want a summary [...]
Is Price Momentum a Brother From Another Mother?
Fundamentally, Momentum is Fundamental Momentum Robert Novy-Marx A version of the paper can be found here. Want a summary of academic papers with alpha? Check out [...]
Money Doctors: Will You Trust Them in a Crisis?
Do you trust your doctor? If you're like most people, chances are good that you do. And why not? What do you know about medicine [...]
Value Investing: Accruals, Cash Flows, and Operating Profitability
Accruals, Cash Flows, and Operating Profitability in the Cross Section of Stock Returns Ball, Gerakos, Linnainmaa and Nikolaev A version of the paper can be [...]
Does Science Advance One Funeral at a Time?
A really interesting paper hit the NBER wires recently. The central argument of the paper is that "rock star" thought leaders dominate a field, but [...]
Interest Rates, Tax-Selling, and Stock Return Seasonality
Stock prices under pressure: How tax and interest rates drive seasonal variation in expected returns Kang, Pekkala, and et al. A version of the paper [...]
Thinking About Corporate Governance In Family-Owned Firms
Families are a basic and universal institution of human society that provide a network of relationships, safety and support, allowing the transmission of values and [...]
A Win for Socially Responsible Investing: Rethinking “Sin Stocks”
I have a love-hate relationship with sin stocks. On one hand, my first big winning stock pick was Swisher Sweet Cigars, which nearly doubled a [...]
‘Tis the Season for strange effects in the stock market.
The efficient market hypothesis suggests that stock prices are always “right” in the sense that stock prices reflect all available information. Of course, during tax [...]
Our Top 5 Geeky Finance Posts for 2015
Friends/Readers: We are calling it quits for the holidays. Most of us have kids and Santa is coming to town! We'll talk research and educate investors [...]
Avoid Firms with CFOs that Golf All the Time
Chipping Away at Financial Reporting Quality Biggerstaff, Cicero, Goldie, and Reid. A version of the paper can be found here. Want a summary of academic [...]
Are Stock Pricing Anomalies Driven by Risk or Mispricing?
Anomalies and News Engelberg, McLean and Pontiff A version of the paper can be found here. Want a summary of academic papers with alpha? Check out [...]
A Remarkable View of China’s Official GDP — It’s Not What You Think
A few weeks ago, the WSJ announced that in the third quarter the growth rate of China’s economy had declined to 6.9% -- the lowest [...]
Value Investing Requires Patience…a LOT of Patience–Ask Cliff Asness
Value investing was a lot easier in 2012 and 2013 when our value approach beat the market by a substantial margin and we had a reasonable [...]
Expanding the Efficient Frontier with Value and Momentum Strategies
Awww...modern portfolio theory...that feel-good construct I teach to all of my graduate-level finance students each year. Simply input 1) a vector of expected returns and [...]