Meb Faber Research – Stock Market and Investing Blog

I have a small account of my own that I am going to track with a payout yield portfolio starting at the close today (background post here). The average net payout yield for the top five stocks is 10.78% vs. 5.67% average across all DOW stocks. Broken down into dividend yield it is 2.07% vs. 2.27% (all...

I can't believe Vegas only has my Denver Broncos winning 9 games this year. I sure hope Dr. Bob likes them more than the odds makers (but at least I'm not an Oakland or Detroit fan). Here is an article from the WSJ on his stat focused betting. He did 57% in the NFL last year...

Going to hit resistance at the 1996 high?Chart from futuresource.com

Can listed hedge funds take you where you want to go - or are their benefits merely an illusion?I don't know why listed hedge funds don't get any press in the US. I used to post quite regularly on the topic, but have not re-examined the space in some time. There are roughly 40-50 listed hedge funds...

An economics professor and a grad student are walking along the sidewalk, and the grad student spots a twenty dollar bill on the sidewalk. He says, “Hey professor, look, a twenty dollar bill.” The professor says, “Nonsense. If there were a twenty dollar bill on the street, someone would have picked it up already.” They walk past, and a...

I used to get so infuriated when one of my friends would forward me an email that said something along the lines of, "If you forward this email Microsoft has a beta tracking system that will then send you $250". It would take all my self restraint not to 'reply all' with various insults and misgivings. Usually,...

No wonder people have a dim view of the investment management business. This book is set to be published in a month - "The Wolf of Wall Street". It is written by Jordan Belfort, a broker that sold worthless stocks to thousands of unsuspecting investors at Stratton Oakmont brokerage in the 1990s. Investors lost at least...

I had a post awhile back that focused on a new CEF that invests in cat bonds (HNW). On the same topic, Michael Lewis has a good article in The New York Times Magazine titled, "In Nature's Casino". Well worth the read.There is also a new blog that hit my radar screen today, and if the first...

From AlphaLetters, two more great quant working paper reviews:Article 8.Category: Calendar anomalies, weather anomalies, macro economic news announcementsTitle: The Arrival of Information and Stock Market AnomaliesAuthor: Jeffrey R. GerlachSource: College of William and Mary working paperLink: http://jrgerl.people.wm.edu/calendar%20anomaly.pdf Summary:This paper studies the relationship between macroeconomic news announcements and six stock market calendar/weather anomalies (the turn-of-the-month, monthly, rainfall, temperature, holiday and...

Here are two behavioral downloads:Applying Behavioral Finance to Value Investing - Whitney TilsonBehavioural Finance - Martin SewellDaniel Kahneman, from an interview with Money Magazine:Q. You once said we'd all be better investors if we just made fewer decisions.A. Two decisions really matter: how much of your wealth you want to put at risk and how much risk you want...