Woefully Neglected Evidence on Systematic Decision Making
50 Years of Successful Predictive Modeling Should Be Enough: Lessons for Philosophy of Science Our aim in this paper is to bring the woefully neglected literature on [...]
Is Hiring Bad for Stock Returns?
Labor Hiring, Investment, and Stock Return Predictability in the Cross Section Frederico Belo, Xiaoji Lin, Santigo Bazdresch A version of the paper can be found here. [...]
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 [...]
Rebalancing: Less is More?
We did a quick study on monthly vs. annual rebalancing for the IVY5 asset allocation portfolio. We did buy and hold and moving average rule [...]
Trading with Algorithms in the Environment
Trading on Algos Johannes Atle Skjeltorp, Elvira Sojli, Wing Wah Tham A version of the paper can be found here. Want a summary of academic papers [...]
Finance Mythbuster: Is Economic Growth Good for Investors?
Is Economic Growth Good for Investors? Jay R. Ritter A version of the paper can be found here. Want a summary of academic papers with alpha? [...]
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. [...]
Calling All Python Developers…
Master Shenglan, our former resident programming genius who has since left us for the riches of Wall Street, is in need of some help... [...]
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 [...]
Having Your Cake and Eating it Too: Tax Efficiency and Performance
Tax efficient asset management: Evidence from Equity Mutual Funds Investment taxes have a substantial impact on the performance of taxable mutual fund investors. Mutual funds can reduce the tax burdens of their [...]
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 [...]
Making Fun of Quantitative and Fundamental Investors
A video I made a few years ago, which pits an uber quantitative propeller-head geek against an overconfident ego-maniac fundamental investor. [youtube url="http://youtu.be/PaaBuZUeWfo"]
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. [...]