stewart

Taboo Talk: Technical Analysis – Morningstar

It’s been a while since I’ve seen a portfolio manager confess to using technical analysis. Well, not using that word.
Picking stocks because of their price movements fell into academic disfavor in the 1960s, when mainframe computers gave professors the ability to collect and crunch large data sets. The University of Chicago’s Gene Fama showed that past stock prices had […]

Insider Trading is Very Damaging to Markets and a Terrible Crime …

Interesting bit from Slate (via Business
Insider
) from last week tracing
the shockingly good record of Securities and Exchange
Commission (SEC) employees when it comes to making trades at the
right time in stocks of companies the SEC investigates.Turns out reseachers found “SEC employees tend to sell a
company’s stock before the SEC takes enforcement action against the
company” leading to:
abnormal returns of about 4 percent for […]