Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out including a look at the difference between a hedge and diversification.
Quote of the Day
"The thing to know about returns is that they are extremely sensitive to the period you are analyzing. Even 50 years of stock data may not tell you very much."
(Allison Schrager)
Chart of the Day
Adjusted for economic conditions, Americans are historically glum.
Options
- Just because 0DTE options are overvalued doesn't mean you should short them. (mailchi.mp)
- Covid broke the options expiration week phenomenon. (quantifiableedges.com)
Behavior
- How robo-advice could change household behavior. (papers.ssrn.com)
- All else equal, attractive people raise more venture capital. (ft.com)
Macro
- Why equities are an 'imperfect hedge' against inflation. (advisorperspectives.com)
- What happens if you GDP-weight a U.S. stock market index? (blogs.cfainstitute.org)
Research
- A lot of factor ETFs actually have exposure to multiple factors. (papers.ssrn.com)
- Why investors should pay attention to employee turnover. (klementoninvesting.substack.com)
- AI is no magic bullet for generating alpha. (riaintel.com)
- How long-short investing changes the direct indexing equation. (papers.ssrn.com)
- Why public pension funds should pay up for CIOs. (institutionalinvestor.com)
- Retail traders trade crypto differently. (papers.ssrn.com)
- How much does the European economy affect the U.S.? (libertystreeteconomics.newyorkfed.org)