Valuewalk.com
0
All posts from Valuewalk.com
Valuewalk.com in Valuewalk.com,

Talking Numbers: Fundamental Recommendations “Reveal No Value” [STUDY]

Talking Numbers: Technical Versus Fundamental Recommendations

H/T George Pearkes

Doron Avramov,

The Hebrew University of Jerusalem

Guy Kaplanski,

Bar-Ilan University, Israel

Haim Levy

The Hebrew University of Jerusalem

This version: August 20, 2015

Abstract:

This study assesses the economic value of technical and fundamental recommendations simultaneously featured on “Talking Numbers,” a CNBC and Yahoo! Inc. (NASDAQ:YHOO) joint broadcast. Technicians display stock-picking skills, while fundamentalists reveal no value. In particular, technicians overwhelmingly outperform fundamentalists in predicting returns over horizons of three to nine months and moreover they produce large alpha with respect to the Fama and French (1993) and momentum benchmarks. Considering market indexes, Treasuries, commodities, and various equity indexes, both schools of recommendation generate poor forecasts. Overall, the evidence shows that proprietary trading rules could, at best, enhance investments in single stocks, while returns on broader assets are unpredictable.

Talking Numbers: Technical Versus Fundamental Recommendations - Introduction

This paper employs a novel dataset from “Talking Numbers” to assess the economic value of technical and fundamental recommendations covering a comprehensive list of assets. Hosted by CNBC and Yahoo Finance, “Talking Numbers” is a media broadcast simultaneously featuring fundamental and technical recommendations before and during the...


More