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.
2019-06-03 11:31:00 Monday ET

The Sino-U.S. trade war may be the Thucydides trap or a clash of Caucasian and non-Caucasian civilizations. The proverbial Thucydides trap refers to the his
2017-08-19 14:43:00 Saturday ET

In a recent tweet, President Donald Trump criticizes Amazon over taxes and jobs. Without providing specific evidence, Trump accuses of the e-commerce retail
2021-02-01 10:19:00 Monday ET

In recent times, the International Monetary Fund (IMF) predicts that the fiscal-debt-to-GDP ratio of most rich economies would rise from 95% in 2018 to 135%
2017-08-07 09:39:00 Monday ET

Global financial markets suffer as President Trump promises *fire and fury* in response to the recent report that North Korea has successfully miniaturized
2018-07-03 11:42:00 Tuesday ET

President Trump's current trade policies appear like the Reagan administration's protectionist trade policies back in the 1980s. In comparison to th
2019-01-17 10:41:00 Thursday ET

Sino-American trade talks make positive progress over 3 consecutive days as S&P 500 and global stock market indices post 3-day win streaks. Asian and Eu