Why Momentum Is Struggling
Momentum is the tendency for assets that have performed well (poorly) in the recent past to continue to perform well (poorly) in the future, at least for a short period of time. Mark Carhart, in his 1997 study “On Persistence...
What a 12-Year-Old Ukulele Player Teaches Us About Authenticity In Our Work
What vocational lessons could we possibly learn from the 12-year-old viral sensation who just won America’s Got Talent? I don’t watch reality television contests, because as a rule, the best participants rarely participate and when they do, they almost never win....
What A 12-Year-Old Ukulele Player Teaches Us About Authenticity In Our Work
What vocational lessons could we possibly learn from the 12-year-old viral sensation who just won America’s Got Talent? I don’t watch reality television contests, because as a rule, the best participants rarely participate and when they do, they almost never...
Trend Following Works the Weakest After Financial Crises
Time-series momentum examines the trend of an asset with respect to its own past performance. This is different than cross-sectional momentum (often referred to as Carhart momentum), which compares the performance of an asset with respect to the performance of...
Monetary Policy & Mutual Fund Flows
The Federal Open Market Committee (FOMC) of the Federal Reserve sets a target for the federal funds rate (FFR) in an effort to influence the money supply, and in turn the broader economy. This, along with more uncommon actions like...
‘Incredible Shrinking Alpha’ Continues
Even though Wall Street tries to keep alive the debate about the merits of active versus passive investing, a clear trend has emerged over the last several decades in which investors are slowly but steadily abandoning the hope of outperformance...
A Persistent Kind Of Momentum
Time-series momentum examines the trend of an asset with respect to its own past performance. This is very different than cross-sectional momentum (often referred to as Carhart momentum), which compares the performance of an asset with respect to the performance...
Explaining The ‘Disposition Effect’
There is a large body of academic evidence demonstrating that individual investors are subject to the “disposition effect.” Those suffering from this phenomenon, which was initially described by Hersh Shefrin and Meir Statman in their 1985 paper, “The Disposition to...
