I’ve been investing for over 35 years and having lived through a number of speculative bubbles you start to get a feel for them. Today, I believe we have some pockets over very over-valued assets such as certain high growth tech and biotech stocks and SPACs. So, today I want to talk a bit about […] Read the full article…
• The Market correction last week was the fastest on record • Historically, the average return over the next year from 5% drop is +12% • When the market value is ‘fair’ at the drop, the next year is +17.3% • If history is a guide, selling into the drop my not be prudent; for […] Read the full article…
Momentum refers to the market anomaly where stocks that have had the greatest return continue to outperform those with weak returns. One of the most famous papers on the topic was written by Narasimhan Jegadeesh and Sheridan Titman (’93). In their paper, ”Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency”, the […] Read the full article…
Employee benefit packages often include programs that encourage ownership of company shares through discounted share purchase programs (ESPP), restricted stock grants and/or employee stock option programs. Companies look to motivate employees to hold shares of the company with the idea that they will benefit by taking actions that are aligned with shareholder interests. From an […] Read the full article…