Topic: Markets
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?
Out of the 1990s Asian Crisis, a New Bond Market Rises
Local currency sovereign bonds transfer risk from issuer to buyer
Options Market Signals Scope of Federal Reserve Interventions
Traders see an implicit promise beyond specific asset purchases
One European Country Defaults: How Hard-Hit Is the Euro?
A predictive model employs credit default swaps across currencies
Often Reviled, Short Sellers Are Newly Vulnerable to the Meme Mob
A short squeeze can ripple across short sellers’ positions
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
Market Bubbles Aren’t Entirely Irrational Exuberance
A model examines the relationships between innovation, speculation and market values
Keynes vs. FDR: Lessons from the Great Recession
Sebastian Edwards finds Keynes’ public take-down of Roosevelt’s gold policies still relevant today
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
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
How Very Small Stocks Skew Investing Wisdom
Well-known market anomalies are largely absent among the biggest stocks
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
How Bond and Stock Prices Combine to Influence Corporate Investment
Equity volatility can encourage — or dampen — investment, depending on a firm’s bond spread
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
Fairness in the Allocation of Scarce Goods and Services
As alternative pricing schemes proliferate, researchers examine beliefs about their fairness
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