Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at the case for microcaps.
Quote of the Day
"This skew, combined with the magic of multi-period compounding, explains much of the long-term value of investing in stocks."
(C. Thomas Howard)
History
- You can't tell the story of indexing without the late John “Mac” McQuown. (on.ft.com)
- Mutual funds have been around for a 100 years now. (fhmagazine.org)
- Joachim Klement, "In economics, finance, politics, and most social sciences we create models with an error term and then conveniently ignore the error term as ‘noise.’ (klementoninvesting.substack.com)
Global
- Increased globalization helps explain rising correlations. (morningstar.com)
- Why should factor momentum cross borders? (klementoninvesting.substack.com)
Research
- Greg Obenshain, "Industry is not destiny." (mailchi.mp)
- How partisanship affects stock returns. (sparklinecapital.com)
- A feature of markets is the extrapolation of growth rates into the future. (morningstar.com)
- How time-varying drivers make forecasting the stock market a challenge. (mrzepczynski.blogspot.com)
- Using AI to improve upon values-based portfolio allocations. (papers.ssrn.com)
- Anomaly returns occur quickly after data releases. (alphaarchitect.com)
- More data is better when it comes to private credit. (papers.ssrn.com)
- How conscientiousness affects positive financial behaviors like savings. (papers.ssrn.com)
