Market Crash Stressing You Out? It Should…
Cortisol Shifts Financial Risk Preferences Kandasamy et al. A version of the paper can be found here. Want a summary of academic papers with alpha? Check [...]
Everything You Wanted to Know About Investing (but were afraid to ask)
I'm new to the crew here, but I'd like to introduce myself. My name is Gabe Kates and I'm currently a student at Haverford College, [...]
Behavioral Finance 101 for Wall Street: Social Anchoring
The “anchoring bias” is firmly established in psychology circles, but a more recent area of focus within the field--social anchoring--is opening up some intriguing new [...]
Risk Parity Across Time? A Simulation Education…
Inter-Temporal Risk Parity: A Constant Volatility Framework for Equities and Other Asset Classes R Perchet, R Carvalho T Heckel and P Moulin A version of [...]
The Trouble with Non-Transparent Active ETFs
Barron's has an interesting article discussing "The Trouble with Actively Managed ETFs." The article should have been titled "The Trouble with Non-Transparent Active ETFs." A [...]
Private Equity Performing Better than We Thought?
Private Equity Performance: What Do We Know? ROBERT S. HARRIS, TIM JENKINSON andSTEVEN N. KAPLAN A version of the paper can be found here. Want a [...]
Why ETFs are more tax-efficient than mutual funds
The ETF structure is often regarded as being "tax-efficient." However, many investors -- even sophisticated professionals -- often blow off the benefits of the ETF [...]
Do Rituals Make you a Better Investor?
Rituals Enhance Consumption Vohs, J., Y. Wang, F. Gino, and M. I. Norton. A version of the paper can be found here. Want a summary of [...]
Gold’s 3,000 Year Backtest–A New World Record!
Gold: The Best Performing Asset of the Last 3,000 Years? Claude Erb A version of the paper can be found here. Want a summary of academic [...]
Women Write Better Annual Reports
Are Female CFOs Better at Improving Readability of the Annual Reports? Andy Kim and Sung Gon Chung A version of the paper can be found here. [...]
Bernie Madoff’s Contribution to “The Cost of Investing”
Ken French has a wonderful paper called the Cost of Active Investing. He presented the paper at the 2008 AFA Presidential Address. I compare the fees, [...]
Is Smart Beta Bullsh!+?
John Bogle did a tremendous service to humanity when he launched the first index fund in 1975. By providing people with a passive, low-cost way [...]
Meb’s new book out!
$5 on Amazon--won't set you back too much! http://mebfaber.com/2014/03/18/new-book-is-out/ Global Value: How to Spot Bubbles, Avoid Market Crashes, and Earn Big Returns in the Stock [...]
Some Math Profs aren’t Fond of Moving Average Rules
The mathematicians aren't fond of moving-average trading rules: For every day in the sample, we can compute one average price of that stock using the previous [...]
Does Google Trends Predict Market Returns? A Second Look…
Do Google Trend Data Contain More Predictability than Price Returns? Damien Challet and Ahmed Bel Hadj Ayed A version of the paper can be found here. [...]
Art, Stamps, and Violins in Your Portfolio?
The Investment Performance of Art and Other Collectibles Elroy Dimson, Christophe Spaenjers A version of the paper can be found here. Want a summary of academic [...]
Top 10 Rules for Forecasting
h.t. M Kline
Low Volatility Anomaly Lacks Robustness?
Question: How many ETF companies are hawking "Smart" beta products that offer low volatility or low beta portfolios (we could probably throw minimum volatility in [...]
Think You’re Smarter than a Monkey?
BBC has an article discussing the same research we highlighted almost a year ago: Her conclusion is that these biases are so deep rooted in [...]
You shouldn’t buy this stock at any price.
Music to a value investor's ears: You shouldn't buy this stock at any price. Ben Graham advocated that we should always follow a cardinal rule [...]