Imagine the World in 2035: No “poor” countries
Bill and Melinda Gates think it is possible: By 2035, there will be almost no poor countries left in the world. Check out the Gates [...]
Models vs. Experts: #15: Do Behavioral cues matter?
Psychiatric diagnoses: A study of how they are made Kendell, R. E. British Journal of Psychiatry, 122, 437-445 An online version of the paper can [...]
A Compilation of Evidence-Based Trading Ideas
We get constant emails asking us: Where is there a one-stop shop" for different trading ideas? And I always have the same answer: Our Academic [...]
The Psychology of Scarcity: Part 2 of 2 (Bonus! Scarcity in Asset Allocation)
How can one optimize performance and decision-making when one is affected by scarcity? This is the subject of Part 2 of our 2-part scarcity series. [...]
Equity Term Structure and Option Returns
Equity Volatility Term Structures and the Cross-Section of Option Return Aurelio Vasquez A version of the paper can be found here. Want a summary of academic [...]
Insider Trading via Your Kid’s Accounts?
Informed Trading through the Accounts of Children Henk Berkman, Paul D. Koch and P. Joakim Westerholm A version of the paper can be found here. Want [...]
Sovereign Bonds Spreads: Your Politics Matter.
Political Risk Spreads Bekaert, Harvey, Lundblad, and Siegal A version of the paper can be found here. Want a summary of academic papers with alpha? Check [...]
Confirmation Bias Strikes Again…
http://www.cnn.com/2014/01/17/travel/southwest-wrong-airport The pilots of Southwest flight 4013 say that Branson Airport was correctly programmed into their on-board computer Sunday, but that they "mistakenly identified" another [...]
Fama Doesn’t Deserve a Nobel Prize?
Marty Whitman makes a bold statement in his recent letter: “I am disappointed that a Nobel Prize was awarded to Eugene Fama, who studies only markets and [...]
Is the Chronic Unemployment Here to Stay?
The famous (perhaps infamous to some folks) John Maynard Keynes has a great quote related to technological unemployment from his essay, "Economic Possibilities for our [...]
ETF and Mutual Fund Taxation: Remind Me Again Why Mutual Funds Exist?
Many mutual funds will be sending you a very special gift in the coming weeks -- their annual capital gains distributions. Mutual fund investors get [...]
How many times has the S&P 500 been over 32%?
What's your guess? Seriously, before looking at the answer below... And the answer is... scroll. scroll. scroll. scroll. scroll. scroll. scroll. scroll. scroll. scroll. scroll. [...]
The Rocky Road to Economic Liberalization in China
China's banks are being buffeted by the winds of change. Earlier this month, the Shanghai Composite had its longest losing streak in 19 years, which [...]
The Psychology of Scarcity: Part 1 of 2
"…The inconveniences of a real scarcity cannot be remedied; they can only be palliated.” - Adam Smith, Chapter V, The Wealth of Nations As Adam [...]
High Payout Ratios Predict Higher Earnings Growth–Huh?
Every quarter, boards across America wrestle with the complex question of dividend policy. Perhaps the company has excess cash that should be paid out as [...]
Is Volatility for Misguided Geeks?
Warren Buffett doesn’t like it when people use volatility to measure risk. He succinctly describes his criticism: We bought The Washington Post Company at a [...]
What is Behavioral Finance?
Behavioral finance means a lot of things to a lot of people. In this short piece I'll outline what "behavioral finance" means to academic researchers. [...]
Understanding the Relationship between Stock Prices and Earnings
Stock Prices and Earnings: A History of Research Patricia M. Dechow, Richard G. Sloan, and Jenny Zha A version of the paper can be found here. [...]
Systematically Executing a Value Investment Philosophy
https://www.nantucketproject.com/wes-gray-from-concept-to-reality The story of our quantitative value algorithm as told at the Nantucket Project: [youtube url="http://youtu.be/3I9y2D5-Ol4"]
International Shareholder Yield is Live!
Meb and team launched an international version of his shareholder yield ETF. Very cool. I'm most impressed with the logo--last time I saw an elephant [...]