The Rational Reminder Podcast

Episode 342 - Matthew Ringgenberg: When Do Anomaly Returns Happen?

15 snips
Jan 30, 2025
Guest
Matthew Ringgenberg
Matthew Ringgenberg, a finance professor at the University of Utah, dives into the intriguing realm of anomaly returns. He defines asset pricing anomalies and discusses when these returns emerge in relation to signal information releases. The conversation touches on the predictive power of various models and explores the significance of equity loan fees in forecasting market outcomes. Ringgenberg also argues for the necessity of long-term happiness as a measure of true success, challenging conventional investment wisdom.
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INSIGHT

Cause of Anomalies

  • The concentration of returns around information releases supports the existence of anomalies.
  • Anomalies represent delayed information processing, not just data artifacts.
INSIGHT

Predictable Price Drift

  • Stock prices drift predictably even before anomaly signal information becomes public.
  • This suggests some traders predict the information and position themselves early.
INSIGHT

Market Efficiency Paradox

  • Predictable anomaly signals suggest markets might be less efficient than previously thought.
  • However, decreasing returns over time indicate increasing market efficiency.
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