Join educated investors who get actionable, evidence-based wealth management insights delivered directly to their inbox.
Subscribe

Mispricing Isn’t Going Anywhere

Financial research has uncovered many anomalies (mispricings) that persist even well after they’ve been discovered, the findings are published and their existence becomes widely known. The most well-known anomalies that represent violations of the Fama-French three-factor model (market beta, size and value) are:

  1. Net Stock Issues: Net stock issuance and stock returns are negatively correlated. It’s been shown that smart managers issue shares when sentiment-driven traders push prices to overvalued levels.

Read the rest of the article on ETF.com.


Our Offices
©2018 Arnett Carbis Toothman Wealth Advisors LLC