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.
2018-10-27 09:34:00 Saturday ET

U.S. automobile and real estate sales decline despite higher consumer confidence and low unemployment as of October 2018. This slowdown arises from the curr
2020-03-19 13:39:00 Thursday ET

The business legacy and sensitivity of Steve Jobs can transform smart mobile devices with Internet connectivity, music and video content curation, and digit
2018-11-29 11:33:00 Thursday ET

A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms. As Democrats have successfully flipped the Ho
2018-10-19 13:37:00 Friday ET

PayPal earns great fintech reputation from its massive worldwide network of 250+ million active users. As PayPal beats the revenue and profit expectations o
2019-08-09 18:35:00 Friday ET

Nobel Laureate Joseph Stiglitz maintains that globalization only works for a few elite groups; whereas, the government should now reassert itself in terms o
2017-05-31 06:36:00 Wednesday ET

The Federal Reserve rubber-stamps the positive conclusion that all of the 34 major banks pass their annual CCAR macro stress tests for the first time since