Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at the distress risk premium.
Quote of the Day
"Most strategies will fail in the long term due to market regime changes."
(Michael Harris)
ERP
- Does new data put the idea of equity superiority, over bonds, into doubt? (morningstar.com)
- The risks that come along with a 100% U.S. equity portfolio, not least of which are behavioral. (ofdollarsanddata.com)
Research
- What factors are appropriate for defensive investors? (alphaarchitect.com)
- Crowded trades increase crash risks. (alphaarchitect.com)
- How the sensitivity to interest rates of factors, and sectors, vary in the U.S. (insights.finominal.com)
- The case for buying open-end bond mutual funds with unrealized losses. (advisorperspectives.com)
- A review of "Investing in U.S. Financial History: Understanding the Past to Forecast the Future" by Mark J. Higgins. (blogs.cfainstitute.org)
- You can safely ignore strategist price target forecasts. (klementoninvesting.substack.com)