Tag Archives: economics


Academic Research Destroys Stock Values

Academics are often called out of touch or cloistered, and are condemned for pursuing research that’s irrelevant to daily life. New research, however, points to a powerful exception:

Simply by publishing an academic paper, a professor can demolish your investment strategy.

Buy stocks that recently did well, focus on firms that reinvest profits—it doesn’t matter. If a finance scholar writes about your strategy, over the next decade or so your returns will shrink by more than one-third.

That’s tru…