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Poring over stale financial information might not seem like a particularly useful investment strategy, but new research suggests that yesterday’s news can help drive tomorrow’s profit: Investors can generate an impressive average annual return of close to 8 percent using a simple strategy that relies on the stock market’s reaction to releases of previously announced economic data.
This finding comes from a group of researchers including McCombs Assistant Professor Shimon Kogan, who looked at how U.S. stock and Treasury futures prices respond to the information contained in the monthly U.S. Leading Economic Index (LEI). They found the prices moved strongly, even though much of the information in that report had already been released elsewhere...
Do Stale Statistics Drive the Market? | Texas Enterprise
This finding comes from a group of researchers including McCombs Assistant Professor Shimon Kogan, who looked at how U.S. stock and Treasury futures prices respond to the information contained in the monthly U.S. Leading Economic Index (LEI). They found the prices moved strongly, even though much of the information in that report had already been released elsewhere...
Do Stale Statistics Drive the Market? | Texas Enterprise