Finance
Study: Margin Trading Causes Stock Prices to Drop in Concert
During financial crises, stocks tend to fall together more than they should. A new study co-authored by Yale SOM’s Heather Tookes suggests that margin trading plays a substantial role in driving this downward spiral.
Video: Why You Should Care about the Fed’s Inflation Policy
William English, a former Fed official who is now a professor in the practice of finance at Yale SOM, explains why the Fed shifted its approach to balancing inflation and employment, and what the change means for the economy.
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How Big Investors Avoid Market Predators and Keep Trading Costs Low
Researchers have generally believed that as large institutional investors make bigger trades, their trading costs rise accordingly. Research from Yale SOM’s Tobias Moskowitz finds that they take a slow-and-steady approach to keep costs down and outsmart market predators.
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Awaiting the Will to Ensure Financial Market Stability
In a conversation with Yale SOM’s Andrew Metrick, Paul Tucker, chair of the Systemic Risk Council and former deputy governor for financial stability at the Bank of England, says that financial markets are still facing serious stability risks.
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How is Mexico Navigating the COVID Financial Crisis?
In a recent online conversation hosted by Yale SOM, Mexico’s chief central banker discussed the country’s response to the economic distress caused by COVID-19—the country’s third financial crisis in recent decades.
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During the COVID-19 Crash, Investors’ Beliefs Didn’t Match Their Behavior
Despite a general wave of pessimism following the COVID-19 stock crash in March, few investors made significant changes to their portfolios, according to new research from Yale SOM’s Stefano Giglio.
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Rational Order from ‘Irrational’ Actions
Prof. Shyam Sunder outlines a strain of research, drawing on complexity theory, that suggests that outcomes of a social system can be rational even if its individual participants are not rational.
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A Passionate Startup Pitch Is Powerful—But Can Be Misleading
According to a new study co-authored by Yale SOM’s Song Ma, those with cheerful and enthusiastic presentations are more likely to get venture capital funding—and less likely to build successful ventures.
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A Federal Program Is Supposed to Keep Midsize Businesses Afloat. Why Isn’t It Reaching Them?
Yale SOM’s William English explains how the Main Street Lending Program fits into the array of federal stimulus efforts and offers proposals for making it work better.
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Does A Mutual Fund’s Past Performance Predict Its Future?
A classic 1997 paper on mutual fund performance doesn’t describe present-day markets, Yale SOM's James Choi found.
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How You Can Invest in Racial Justice
Yale SOM’s Teresa Chahine and a panel of experts discussed how businesses, financial firms, and regular investors can make choices that empower local businesses and increase opportunity.
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