Stock research reports play a significant role in many investors’ stock selection process. Some use them to get trading ideas, while others, including professional asset managers, include or exclude stocks according to buy/hold/sell ratings. Professional equity research is useful because you can only analyze so many stocks yourself. Condensed information in the form of equity […]
Investing
Using Fundamental Data To Improve Momentum Investing Strategies
If you are reading this blog you most likely already know about momentum investing strategies. In a nutshell, momentum traders buys past winners, often of the past 12 months, in the hope that these stocks continue to go up. There are several explanations to why momentum investing works. One is that investors buy past winners because […]
5 Economic Indicators That Matter To Investors
Recently, I grabbed a book from my library that had been standing there for the past 10 years. It’s called Guide to the 50 Economic Indicators That Really Matter. It’s one of the few books that describe concrete trading strategies that are still relevant. It’s also a great read to brush up on knowledge about economic […]
How To Make Money In REITs
REIT stands for Real Estate Investment Trust. That’s a company that owns or operates income-generating real estate. REITs are exchange traded, so they can be bought and sold like other financial instruments such as stocks. An investor in a REIT can expect a regular dividend and exposure to the real estate market. In comparison to other […]
Follow The Leader To Make Money In Stocks
There’s a reason that international traders, whether they’re in Tokyo, Singapore, or London, follow the US markets. The US is the hub of global finance. It’s on Wall Street where everything is happening. Watching the reaction of European markets to the opening of US markets demonstrates this. When the US market bell rings, there’s a […]
Should You Invest During An International Crisis?
In the 18th-century, Baron Rothschild allegedly said “buy when there’s blood in the streets, even if the blood is your own”. Most investors understand the idea of buying low and selling high, yet in reality, most do the opposite. How many bought the lows of the financial crisis 2008/09, at the time when Lehman Brothers […]
How To Copy The Best Hedge Funds
Recently we evaluated the reported holdings of institutional investors using data from Sharadar. (As a reminder, institutional investors in control of over $100 million are required to report their holdings to the SEC every quarter. This information is made public normally 45 days later in what are called 13F filings). Simple trading strategies that buy the most […]
Should You Follow Institutional Investors?
Previously, we looked at retail trading data and found that negative retail sentiment was a better buy signal than postive retail sentiment. If it is profitable to do the opposite of what retail traders are doing, an obvious next step is to look into institutional investor holdings. Institutional investors are obliged to report their holdings on […]
Do The Best Places to Work Make the Best Investments?
I first published this article in 2015. I wanted to know whether the best companies to work for end up being good companies to invest in. It’s been six years so it’s time to update the data and see what it tells us. Initial Hypothesis My hypothesis is that companies that are voted great places […]
Are We in a Stock Market Bubble? 5 Key Charts
As humans, we have an amazing ability to suspend disbelief. Imagine how many personal mistakes could be avoided if we took a step back and asked, “What is really happening here?” Right now, there’s a strong case to be made that the stock market is in bubble territory. Everyone knows it, but many choose to bury […]
Growth Trend Timing With US Stocks
I’m always on the lookout for interesting ways to time the market. Using a market timing model can help to avoid painful bear markets and indicate when is a good time to buy stocks. Recently, I was looking at some of the strategies on Allocate Smartly and came across one called Growth Trend Timing. Growth […]
4 Momentum Strategies Put To The Test
Momentum investing is a successful method practiced by many investors around the world. In the past, authors have mainly focused on price momentum with a lookback period of around 12 months. More recently, authors have been including fundamental factors into their analysis. Factors such as earnings, revenue and profit margins. For example, this paper called […]
Is This The Greatest Bubble Of All Time?
There’s been a lot of talk lately as to whether the stock market in 2021 is in a bubble. If you look at Google Trends data you can see that search traffic for the term ‘stock market bubble’ hit an all-time high in January of this year: Search data may have deflated since that January […]
Semrush Looks Like A Winner
Semrush (SEMR) is a SaaS business directed at online marketers which IPO’d on March 25th 2021. The company boasts annual recurring revenues of $144 million with 76% gross margins and a 50% revenue growth rate measured between December 2016 to December 2020. The Semrush IPO was not particularly well received as underwriters hoped for a […]
Do Growth Stocks Make More Money?
I came across the following statement on social media that is attributed to the British economist John Kay: It’s a myth that profits are higher in fast growing industries. – John Kay This is quite an interesting comment. The past decade or so has seen a shift from value stocks into growth. I would argue […]
Genius Sports Looks Like A Good Bet (DMYD Stock)
Ever since I started this website I’ve been focused on systematic trading. I’ve talked about how to build and backtest quantitative trading strategies and its advantages. I’ve also said that I like to combine quantitative analysis with fundamentals and I have had some success doing so. Going forward, I’d love to do more deeper research […]
