Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s links including a look at why you can’t profitably exploit the overnight anomaly.
Quote of the Day
"So if you are old enough to remember the 1987 Crash, memory will serve you well as you judge what kind of risk is appropriate. If you aren’t old enough, then you need to pay especially close attention to the academic studies which conclude that another crash is someday inevitable."
(Mark Hulbert)
Chart of the Day
Carry, as a factor, has been a disappointment over the past decade.
Retail trading
- Why Robinhood should keep its customer trading data private. (forbes.com)
- How random trading can beat going to the casino. (priceactionlab.com)
Yield
- Buffered ETFs are going to generate some interesting opportunities. (bluehavencapital.com)
- Preferred stocks are not a bond substitute. (morningstar.com)
- Behind the unusual math of Series EE U.S. savings bonds at the moment. (marketwatch.com)
Behavior
- Research into why we are easily fooled in a pitch meeting. (insights.som.yale.edu)
- CEOs have shifted their statements to cater to the algorithms parsing text and speech for trading signals (msn.com)
Research
- Why the stock market is now less representative of the economy: service companies are less likely to be public. (papers.ssrn.com)
- There is good evidence for trend following strategies on a global basis. (alphaarchitect.com)
- Factor exposure analysis 101 or why regression analysis can be misleading. (factorresearch.com)
- Fidelity Digital Assets' case for Bitcoin in a portfolio. (fidelitydigitalassets.com)
- It's hard to find evidence that consultants have any ability to identify managers that outperform. (evidenceinvestor.com)
- A round-up of some recent research on index investing. (capitalspectator.com)
