This is a summary of links featured on Quantocracy on Saturday, 06/19/2021. To see our most recent links, visit the Quant Mashup. Read on readers!
Buy&Hold? No, Buy&Sell! [Financial Hacker]Theres no doubt that buying and holding index ETFs is a long-term profitable strategy. But it has two problems. It does not reinvest profits, so the capital grows only linearly, not exponentially. And it exposes the capital to the full rollercoaster market risk. A sure way to go out of the market in a downtrend, and invest the profits back in an uptrend would be (almost) priceless. Markos
Many explanations for the same fact [Alex Chinco]Asset-pricing research consistently produces many different explanations for the same empirical facts. As a rule of thumb, you should expect asset-pricing researchers to wildly overachieve. Behavioral researchers can typically point to several psychological biases which might explain the same anomaly. e.g., it is possible to argue that the excess trading puzzle is due to a preference for gambling,