Tag Archives: invest
Smart investors are looking at various data sets to help give them an edge with their investing. Some of this information is financial in nature — much of it isn’t. Professor Darren Roulstone has studied how investors are using Google to search out financial information and what search volume may say about future stock prices.
I have this recurring nightmare. Actually, I’ve got a lot of frequent bad dreams but this one’s particularly chilling. Things were O.K. at work. I was growing my responsibilities, my authority. I was getting promoted quickly. I was making money. So, like a financial optimist, I bet on the future and started borrowing. It started … Continue Reading
David Yermack, a professor at NYU’s Stern School of Business, studied the first lady’s impact on apparel stocks for companies associated with outfits she wore. The results are impressive: she added over $5B in equity value to those firms in aggregate and stocks typically went up almost 2% in the week following her appearance. What … Continue Reading
I’ve had a couple of readers write in recently asking what I think the best market indicators are. It’s a hard question — I don’t think of them in terms of best or worst. More, there are useful indicators at different junctions in the market and really, they’re all part of an investor toolbox. But, … Continue Reading
How do investors discover what to buy? How do we find investment opportunities? In Does Investor Attention Affect Stock Prices?, Researchers found that small cap stocks with ticker symbols similar to larger cap stocks went up in sympathy with their larger cap brothers. In fact, these attention portfolios saw 1-3% abnormal returns. Pretty interesting, so … Continue Reading
There’s an old adage in the investment field. It’s become almost folk knowledge that you’re supposed to buy on the rumor and sell on the news. Simply, that means that the investment gains are made before news breaks. Once the news — good or bad — makes its way into the media, most of the … Continue Reading