Bonds Could Make a Comeback as a Hedge Against a Recession
Justin Kuepper
|
Let's look at what's driving the risk of a recession and why bonds...
Taken together, these factors suggest that investors may be unwilling to trade against the overpricing of skewed securities. This allows the anomaly to persist. The theory is supported by evidence that has found the “lottery effect” is strongest in stocks for which arbitrage trades may be relatively costly.
The authors concluded that while the three Fama-French factors (beta, size and value) cannot explain the low average returns of high-distress stocks, a high probability of earning jackpot returns can. They also demonstrated that their findings were statistically significant.
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Justin Kuepper
|
Let's look at what's driving the risk of a recession and why bonds...
Justin Kuepper
|
Let's take a look at what active ETFs attracted the most capital during...
News
Technology stocks have finally rebounded after weeks of poor performance.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
Taken together, these factors suggest that investors may be unwilling to trade against the overpricing of skewed securities. This allows the anomaly to persist. The theory is supported by evidence that has found the “lottery effect” is strongest in stocks for which arbitrage trades may be relatively costly.
The authors concluded that while the three Fama-French factors (beta, size and value) cannot explain the low average returns of high-distress stocks, a high probability of earning jackpot returns can. They also demonstrated that their findings were statistically significant.
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
Let's look at what's driving the risk of a recession and why bonds...
Justin Kuepper
|
Let's take a look at what active ETFs attracted the most capital during...
News
Technology stocks have finally rebounded after weeks of poor performance.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...