Social Media Ideas for Market Inefficiencies

Is AI making markets more or less efficient?

Event Voice: How to take advantage of the many inefficiencies in high yield

Artemis’s Jack Holmes explains how investors can benefit from the multiple quirks of an often-overlooked asset class.

What Causes Value Bets? A Deep Dive into Betting Market Inefficiencies

Value bets occur when bookmakers set odds that do not accurately reflect the true probability of an outcome. These discrepancies arise due to various factors, such as public bettin...

Mistakes in financial economics

I feel like this is almost deliberately missing the point. My median expectation is that AI boosts the economy enormously, so shorting things would be a terrible idea. But non-triv...

The Hidden Flaw In Passive Investing: Tracking Market Weights May Not Always Be A Smart Asset Allocation Strategy

The Market Is Getting These Stocks Completely Wrong

The gap between price and value on these names is getting harder to ignore by the day.

The perils of relying on PE ratios

Global gyrations in stock prices and earnings favour other markets

Good Stock Picks, Bad Trading: Why Active Funds Still Lagged

Indexing’s advantage is not merely lower fees. It is also behavior.

The slow learner

A business can strengthen its margins and position for years before its share price catches up. Here is where that gap pays off, and where it traps investors.

The illogicality of markets

There has been a sell-off of AI-related stock in many stock markets today, but this paragraph highlights the whole illogicality of this market. It comes Read the full article...

Why Not Every Fair Value Gap Is a Trade

Private markets suffer distribution problem as firms pursue expansion

Private markets are becoming a core growth engine for the asset and wealth management industries, but their expansion is being constrained by operational challenges rather than pro...

Some kinds of insider trading are perfectly legal – and they offer useful signals about a company’s health

Some kinds of insider trading are perfectly legal – and they offer useful signals about a company’s health By D. Brian Blank, Mississippi State University; Dallin Alldredge, Florid...

Do prediction market odds equal probability? Not quite

Prices are well calibrated and predictably wrong in five ways: longshot bias, capital lock-up, thin books, fees, and resolution risk.

Morningstar: Investors Miss Out on 12% of Fund Returns Over Decade

The return gap was smallest for investors in U.S. equity and allocation funds.

Private assets could work for retail investors — at the right price

Complexity, opacity and liquidity issues are surmountable, but there is a more important barrier: fees

Elevated Markets and the Investor Dilemma

U.S. equity markets sit near all‑time highs, yet the broader backdrop is filled with legitimate concerns.

Fear, greed and FOMO: The behavioural mistakes costing retail investors crores

Fear, greed and the fear of missing out (FOMO) are increasingly driving investment decisions among retail investors, often leading to costly mistakes. Experts say understanding beh...

Baseline Failures are Investors’ Biggest Blind Spots

This is fascinating: ♦️ Mind the Gap: Why Wall Street is Blind to Baseline Failures When you spend decades in corporate consulting and financial analysis like Phil, you notice...

Why Fair Value Gaps Get Weaker: Understanding Repeated Tests, Acceptance and Invalidation

Personal finance links: being less efficient

Wednesdays are all about personal finance here at Abnormal Returns. You can check out last week’s links including a look at how...

Friday links: shouting nonsense

MarketsReal yields are at multi-decade highs. (axios.com)Equities now make up a record percentage of U.S. household wealth. (bloomberg.com)FinancePassive investing killed the med...

As bank earnings approach, a market anomaly emerges

The Financial Select Sector Index trades at roughly 15.5 times forward earnings — about a turn and a quarter cheaper than where it stood in 2024.

The price of stability

Reliable dividends and low volatility are real. But the FMCG index has trailed the broader market by about four points a year for a decade. Stability has a price.