Look at the stock market, and you’ll see that certain stocks often do better than others. Technology stocks have been the standout performers over the past 10 years. Healthcare stocks, while less obvious, have also done very well. Research has found that certain types of stocks have also done [...]
Profitable trading strategies?
Every year, when spring rolls around, investment folks trot out a favorite catchphrase: “Sell in May and go away.” This is based on the idea that the stock market lags during the summer, as people go on vacation. And while it may sound hokey as an investment rule, it’s hardly the only one. There’s [...]
The most wonderful time of the year?
Turn on the radio at this time of year, and you're bound to hear the holiday classic “It's the Most Wonderful Time of the Year.” My question: From an investor’s perspective, is this, in fact, the most wonderful time of the year? It turns out that it is. According to a 2017 paper titled [...]
Should you get on the bandwagon?
A few weeks back, a reader—let’s call him Karl—challenged me with a question. Why, he asked, do I not recommend momentum investment strategies? If you’re not familiar with the term, momentum strategies seek to buy stocks that have done well in the past, with the hope that they will continue rising, [...]
Not just easy, but very easy
Recently, I came across an academic paper with an attention-grabbing title: “It has been very easy to beat the S&P 500.” Not just easy, but very easy. That got my attention because, in recent years, beating the S&P 500 has been anything but easy. In fact, it's been maddeningly difficult. [...]
