Book Review — The Drunkard’s Walk: How Randomness Rules Our Lives
Although randomness is all around us, we often fail to recognize the profound role it plays in our lives. Evolutionary biology and faulty intuition lead [...]
Alternative Beta can be Great: But Beware of Data-Mining!
Quantifying Backtest Overfitting in Alternative Beta Strategies Antti Suhonen, Matthias Lennkh, and Fabrice Perez A version of the paper can be found here. Want a summary [...]
The Academic Finance Papers That Changed My Mind
What does it mean to be the "best" research? For me, this means the most influential in changing my view on the world. So the [...]
Does Buffett Have Lessons for Systematic Value Investors?
We are fundamentals-based value investors, just like Warren and Charlie, but have chosen to pursue the art of value investing in a slightly different way [...]
DIY Asset Allocation Weights: May 2016
Do-It-Yourself tactical asset allocation weights are posted. Create a free account here if you want to access the site directly. Sign in here if you already have a [...]
How Testosterone and Stress Affect Financial Decision-Making
Decision Making, Financial Risk Aversion and Behavioral Biases: The Role of Testosterone and Stress Nofsinger, Patterson and Daigler A version of the paper can be [...]
Our summertime introductory finance education course
Well, it's my birthday today, so I'm getting older, but I'm in high spirits because younger people are so excited to learn new things. Over [...]
Facts, Fiction, and Merger Arbitrage
Investors love to chase after the "next big thing," as investment strategies and styles come in and go out of vogue. The latest object of investor [...]
How the day of the week affects stock market anomalies
Day of the Week and the Cross-Section of Returns Justin Birru A version of the paper can be found here. Want a summary of academic papers [...]
The Moving Average Research King: Valeriy Zakamulin
Some weekend reading for trend-followers who want to question their beliefs. Valeriy Zakamulin is an animal when it comes to generating research on moving averages. [...]
Computers Still Beat Humans? We Ask, Will Grove Responds.
Overconfidence is the death of everything in investing. I suffer from the problem just like everyone else because last time I checked...I'm human. As humans, we [...]
What happens when the intern makes your slide deck
and by "intern" I mean Chief Investment Officer.
Not Impossible: A low-cost, tax-efficient, ESOP 1042 rollover strategy
We created this post as a resource for families and their advisors facing tough decisions regarding their ownership in their family business. Many folks approaching retirement [...]
Confusion central: Figuring out the regulatory status of your financial advisor
Quick question: What's the difference between an "advisor," a "financial advisor," an "investment advisor," an "independent advisor," and a "registered investment advisor?" Answer: Uhh...just stop...I'm already confused. [...]
Can Twitter Predict the Market’s Reaction to Fed FOMC Decisions?
Twitter seems to be a favorite dataset for financial researchers. Researchers keep trying to map tweets to profits. For example, we covered an idea related [...]
Quantcon 2016 in NYC — Stop by and say hello!
If you're attending Quantcon this year be sure to say hello.
Smart Beta: Data Mining, Arbitraged Away, Or Here To Stay?
Large institutional investors have had access to low-cost "smart beta" for many years. But for retail investors and their financial advisors, "smart beta" ETFs are a welcome innovation. [...]
DIY Asset Allocation Weights: April 2016
Do-It-Yourself tactical asset allocation weights are posted. Create a free account here if you want to access the site directly. Sign in here if you already have a [...]
Update on the Valuation Metric Horserace: 2011-2015
Jack and I published, "Analyzing Valuation Measures: A Performance Horse-Race Over the Past 40 Years," in the 2012 Journal of Portfolio Management. Here is a [...]
New WSJ Post: On the origins of risk taking
We did a summary post for the Wall Street Journal on an interesting new paper related to risk taking and your environment. http://blogs.wsj.com/experts/2016/04/04/parents-beware-your-children-will-invest-like-you-do/ Here is [...]