Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at the performance of the value factor overseas.
Quote of the Day
"(U)ltimately, the owners of the trading accounts decide if a strategy should be turned off."
(Michael Harris)
Quant stuff
- Investors are using ChatGPT. Other investors need to pay attention. (marginalrevolution.com)
- A round-up of recent academic research including 'Price Discovery and Trading in Prediction Markets.' (alphainacademia.substack.com)
- A round-up of recent research on forecasting including 'Partisan Bias in Professional Macroeconomic Forecasts.' (capitalspectator.com)
Housing
- Baby booms matter for home prices. (onlinelibrary.wiley.com)
- The U.S. housing market relies heavily on fixed-rate mortgages. How that affect housing prices. (stlouisfed.org)
Research
- What factors actually drive cross-sectional bond returns? (larryswedroe.substack.com)
- Valuation disparities are about returns, not earnings. (morningstar.com)
- Strategies that rely on leverage are at-risk when that leverage is pulled. (alphaarchitect.com)
- The case for a strategic allocation to gold. (carsongroup.com)
- How well-run firms differ. (libertystreeteconomics.newyorkfed.org)
