A new paper from the American Finance Association finds (from the abstract):
An increase in SVI [Google search frequency] predicts higher stock prices in the next two weeks and an eventual price reversal within the year. It also contributes to the large first-day return and long-run underperformance of IPO stocks.
HT: AR
Here’s why it might be time for a low-volatility stock strategy:
Utility stocks are showing signs of buyers’ fatique, and now trade at a higher price-to-earnings ratio than the technology sector.
Not only did hedge funds as a class underperform the S&P 500 by fully 10% through May 10, but only a small sliver of funds managed to outperform it.
The Fed and key markets suggest rising prices are transitory
