Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at why profitability matters so much.
Quote of the Day
"When an organization gets too complex, it becomes unwieldy and inefficient at its job. Most people are supporting and maintaining the system, coordinating with each other, not doing the work."
(Seth Godin)
Round-ups
- Some recent academic research including 'Cross-Bond Momentum Spillovers.' (alphainacademia.substack.com)
- A round-up of recent research on asset allocation including 'A Century of Macro Factor Investing – Diversified Multi-Asset Multi-Factor Strategies through the Cycles.' (capitalspectator.com)
Economics
- Why it matters who is on the FOMC at any point in time. (papers.ssrn.com)
- How universal pre-K boost income and employment. (papers.ssrn.com)
- How disruptions to immigration could affect technology transfer from universities to industry. (papers.ssrn.com)
- How Social Security claiming ages have increased over time. (crr.bc.edu)
Research
- On the importance of the profitability factor. (alphaarchitect.com)
- How fund flows affect factor returns. (klementoninvesting.substack.com)
- Politics and (venture capital) investing don't mix. (papers.ssrn.com)
- How bubbles can (positively) affect the real economy. (mailchi.mp)
- AI models have their own biases that users need to recognize and offset. (blogs.cfainstitute.org)
