2017-05-07 06:39:00 Sun ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
While the original five-factor asset pricing model arises from a quasi-lifetime of top empirical research by Nobel Laureate Eugene Fama and his long-time co-author Kenneth French, the sixth factor is hypothetical in nature and stems from bullish-versus-bearish investor sentiment on social media.
In addition to the conventional fundamental factors such as size, value, market risk, operating profitability, and asset growth, the social media factor serves as a new measure of investor sentiment.
All these factors help explain the time-series variation in most U.S. stock returns relative to the risk-free rate.
Whether this additional social media factor represents exposure to systematic risk remains a debatable controversy because there is now minimal consensus on this open issue.
Several financial economists recommend raising the empirical hurdle for novel fundamental factors such as this social media measure of investor sentiment.
On balance, it is informative for most stock market investors to recognize that social media conveys pivotal information about at least part of the time variation in the vast majority of U.S. stock portfolio returns ceteris paribus.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-03-15 08:46:00 Wednesday ET

The heuristic rule of *accumulative advantage* suggests that a small fraction of the population enjoys a large proportion of both capital and wealth creatio
2019-05-07 09:30:00 Tuesday ET

The Trump team receives a 3.2% first-quarter GDP boost as Fed Chair Jay Powell halts the next interest rate hike in early-May 2019. This smooth upward econo
2018-06-02 09:35:00 Saturday ET

The finance ministers of Britain, Canada, France, Germany, Italy, and Japan team up against U.S. President Donald Trump and Treasury Secretary Steven Mnuchi
2019-12-07 11:30:00 Saturday ET

China turns on its 5G telecom networks in the hot pursuit of global tech supremacy. China Telecom, China Unicom, and China Mobile disclose 5G fees of $18-$2
2018-11-01 08:36:00 Thursday ET

Ford and Baidu team up to test autonomous cars in China. For the next few years, Ford and Baidu plan to collaborate on the car design and user acceptance te
2017-12-11 08:42:00 Monday ET

Fed Chair Janet Yellen says the current high stock market valuation does not mean overvaluation. A stock market quick fire sale would pose minimal risk to t