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 bond ladders.
Quote of the Day
"There is nothing special about dividends, with the returns of dividend-paying stocks well explained by exposure to common factors."
(Larry Swedroe)
Chart of the Day
A sign that investor behavior is getting better over time.
Asset allocaiton
- Is regret a better measure to target for portfolio allocations? (blogs.cfainstitute.org)
- Why asset allocation is sensitive to goals and assumptions. (priceactionlab.com)
- The case against a cryptocurrency allocation. (insights.finominal.com)
- Global macro hedge funds are mid. (klementoninvesting.substack.com)
Corporate finance
- Are family-controlled firms more at-risk of price crashes? (papers.ssrn.com)
- Beware when CEOs change the metric they focus on in conference calls. (papers.ssrn.com)
Research
- Is sector-neutrality a mistake in factor investing? (alphaarchitect.com)
- How S&P 500 additions (and deletions) have performed, post-rebalancing. (wisdomtree.com)
- What happens to the stock market on days before holidays. (papers.ssrn.com)
- How a stock's price affects its risk profile. (blogs.cfainstitute.org)
- Some evidence that it is possible to measure portfolio manager decision making. (institutionalinvestor.com)
- A round-up of recent research on the equity risk premium including 'Equity Premium Events.' (capitalspectator.com)
- A link to "The Cockroach Approach" by Taylor Pearson with Jason Buck. (mutinyfund.com)