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Market timing ability and volatility implied in investment newsletters' asset allocation recommendations

Publication ,  Journal Article
Graham, JR; Harvey, CR
Published in: Journal of Financial Economics
January 1, 1996

We analyze the advice contained in a sample of 237 investment newsletter strategies over 1980-1992. Each newsletter strategy recommends a mix of equity and cash. We find no evidence that letters systematically increase equity weights before market rises or decrease weights before market declines. While there is no information in the newsletter strategies about future market returns, we document that disagreement among the newsletters is correlated with future realized and implied volatility.

Duke Scholars

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Published In

Journal of Financial Economics

DOI

ISSN

0304-405X

Publication Date

January 1, 1996

Volume

42

Issue

3

Start / End Page

397 / 421

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1606 Political Science
  • 1502 Banking, Finance and Investment
  • 1402 Applied Economics
 

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Graham, J. R., & Harvey, C. R. (1996). Market timing ability and volatility implied in investment newsletters' asset allocation recommendations. Journal of Financial Economics, 42(3), 397–421. https://doi.org/10.1016/0304-405X(96)00878-1
Graham, J. R., and C. R. Harvey. “Market timing ability and volatility implied in investment newsletters' asset allocation recommendations.” Journal of Financial Economics 42, no. 3 (January 1, 1996): 397–421. https://doi.org/10.1016/0304-405X(96)00878-1.
Graham JR, Harvey CR. Market timing ability and volatility implied in investment newsletters' asset allocation recommendations. Journal of Financial Economics. 1996 Jan 1;42(3):397–421.
Graham, J. R., and C. R. Harvey. “Market timing ability and volatility implied in investment newsletters' asset allocation recommendations.” Journal of Financial Economics, vol. 42, no. 3, Jan. 1996, pp. 397–421. Scopus, doi:10.1016/0304-405X(96)00878-1.
Graham JR, Harvey CR. Market timing ability and volatility implied in investment newsletters' asset allocation recommendations. Journal of Financial Economics. 1996 Jan 1;42(3):397–421.
Journal cover image

Published In

Journal of Financial Economics

DOI

ISSN

0304-405X

Publication Date

January 1, 1996

Volume

42

Issue

3

Start / End Page

397 / 421

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1606 Political Science
  • 1502 Banking, Finance and Investment
  • 1402 Applied Economics