Topic: Markets
Is Anyone Happy about the College Textbook Market?
Buyers find the tomes heavy, costly and too frequently revised, while sellers might like to kill the used book market entirely
A Tool for Finding Mispriced Stocks
Less sophisticated investors reveal their sentiment in certain trades, and a 20-year study measures it company by company
Rethinking Buy-and-Hold Investing
The case for using rising market volatility as a signal to pare back on stocks — does higher risk always mean higher return?
Fairness in the Allocation of Scarce Goods and Services
As alternative pricing schemes proliferate, researchers examine beliefs about their fairness
What Makes a True Financial Crisis?
Data back to 1870 show similarities in the worst banking system shocks — focusing on loose lending before a meltdown
What Drives LBO Fever? More Than Just Cheap Loans
Private equity investors weigh the total cost of capital — not just debt, but equity as well — when pursuing buyouts
New Appreciation for a Classic Stock Market Gauge
The relationship between short- and longer-term moving averages has strong predictive power for share price returns
How Life Insurers Insulate the Markets from Turmoil
Valentin Haddad’s research finds that insurers’ patient investing shields risky assets — and those who hold them — from steeper declines
Keynes vs. FDR: Lessons from the Great Recession
Sebastian Edwards finds Keynes’ public take-down of Roosevelt’s gold policies still relevant today
The Moat That Keeps Complex Asset Strategies Profitable
Andrea Eisfeldt finds that hedge funds with infrastructure to execute sophisticated arbitrage crowd out less-expert investors
Citizens Are Not Fooled by Fake Statistics
What happened when the Argentine government lied about inflation numbers?
The Limited Payoff in Auto Insurance Advertising
Ads aimed at brand awareness are shown to be more effective
Financial Constraints on Intermediaries Cause Asset Mispricing
Real-world bond data reveals how the capital positions and liquidity of middlemen affect prices of securities they broker
How Very Small Stocks Skew Investing Wisdom
Well-known market anomalies are largely absent among the biggest stocks
In China, Big Investors Have Brilliant Timing ― Or Do They Know Someone?
A scan of a million brokerage accounts finds the wealthy trade ahead of market-moving news
Does Big News Drown Out Corporate Earnings Disclosures?
Henry Friedman’s research finds, surprisingly, that major economic news actually heightens attention paid to company announcements