Rebalance frequency affects value and quality factors in different ways: Value works better when assessed more frequently Quality factors work about the same, regardless of frequently. Other important [...]
Breaking the Glass Ceiling In late 2003, Norway passed a law mandating 40 percent of each gender on the board of publicly limited liability companies. [...]
We recently examined a handful of metrics related to S&P 500 valuations. P/E P/B TEV/EBITDA TEV/FCF TEV/GP Details on these metrics can be found here. [...]
Separating the Wheat from the Chaff: Identifying the Signal and Predictable Error Components of Target Price Forecasts A target price forecast scaled by current price [...]
The Wharton Blog Network recently posted a great piece by Maurice Lefkort on Appraisal Arbitrage, an esoteric area of finance in which legal rules that [...]
Is the Cross-Section of Expected Bond Returns Influenced by Equity Return Predictors? We study whether commonly analyzed equity return predictors also predict corporate bond returns. [...]
High frequent traders are armed with powerful weapons: mobs of PhD quants, super-computers, and sophisticated algorithms. HFT has provided wonderful liquidity benefits to the marketplace. Yet, [...]
What Is behind the Asset Growth and Investment Growth Anomalies? Existing studies show that firm asset and investment growth predict cross-sectional stock returns. Firms that [...]
Recently Discovered Research You Might Have Missed: Manager Selection (Scott Stewart) Measuring the Size Effect with Capitalization-based ETFs (CXO Advisory) Asymmetric Reporting (Armstrong, Taylor and Verrecchia) The [...]
Money Doctors Gennaioli, Shleifer, and Vishny (2015) A version of the paper can be found here. Want a summary of academic papers with alpha? Check out our Academic [...]
Interaction of Size and Momentum Effects in Jordan Firms: 2005-2014 This study sought to disentangle the effects of size and whether there are size and [...]
Public Actors in Private Markets: Toward a Developmental Finance State The nation's recent financial crisis brought into sharp relief fundamental questions concerning the social function [...]
The simple matter is that most clients know how to buy groceries, but few know how to purchase financial products. In the murky world of financial services, clients may be buying products for the first time. More importantly, this purchase is the driver of their long-term financial security. Years of hard work, thrift, and responsible life choices, are baked into each and every retirement portfolio that a banker must now serve. In short, the stakes are too high and the cards are stacked too favorably towards one party. Fiduciary responsibility matters in financial services more than in any other product category outside of urgent medical care. Shouldn't this fiduciary have your best interests at heart? Just as you don't want your doctor to receive kickbacks from Pfizer for overdosing you on Oxycodone, why would you want your financial advisor--or their institution--to receive kickbacks for overdosing you on inefficient, overpriced, investment product that probably won't help you achieve your investment goals? Moral of the story: Ask your banker, or bank-affiliated advisor these questions. If you get answers that sound like the ones above, it might be time to buy a car or an airline ticket, because traveling via railroad is a thing of the past.
Topic: Why Value Investing is Simple, but Not Easy Registration Link: https://interactivebrokers.webex.com/interactivebrokers/onstage/g.php? t=a&d=711901301&SourceId=aa Date and time: Wednesday, March 11th, 2015 12:00pm Eastern Daylight Time (New [...]
Fundamentally, Momentum is Fundamental Momentum Momentum in firm fundamentals, i.e., earnings momentum, explains the performance of strategies based on price momentum. Earnings surprise measures subsume [...]
Adam Nash, the CEO of WealthFront.com, recently made a simple observation: Schwab has thrown their clients under the bus. The irony is that Schwab has 4 transcendent values: No [...]
SHO Time for Limits-to-Arbitrage and Asset Pricing Anomalies We examine the causal effect of limits-to-arbitrage on ten well-known asset pricing anomalies using Regulation SHO as [...]
Recently Discovered Research You Might Have Missed: Understanding Options-Based Sentiment in the Stock Market (Traderfeed) What Do Accruals Tell Us About Future Cash Flows? (Barth, Clinch and [...]
Barry has a nice piece in the Washington Post asking a simple question: What is the best valuation metric to assess if a stock is cheap or [...]
Book Overview Anyone involved in business has observed that certain products, services or ideas seem to catch on and become wildly popular. Others ideas fall [...]
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