Finance
The Key Information Hiding Behind ‘Consensus’ Target Stock Prices
Ordinary investors generally can only see an average of analysts’ target prices for a given stock. In a new study, Yale SOM’s Thomas Steffen and Frank Zhang find that when the degree of variation within that “consensus” figure is large, it’s a bad sign for future returns.
Is Bitcoin a Bubble?
The price of a single Bitcoin is up more than 700% since the beginning of 2020, defying years of predictions of a crash. We asked Prof. Aleh Tsyvinski, professor of economics at Yale, to shed some light on the continuing phenomenon.
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.
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.
Will the GameStop Rebellion Last?
We asked Yale SOM’s Kelly Shue, an expert in behavioral economics and empirical corporate finance, to explain what the GameStop phenomenon might mean for the balance of power on Wall Street.
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.
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.
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.
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.
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.
Holding Up a Mirror to the First Global Stock Bubble
Yale SOM’s William Goetzmann, an expert in art and finance history, showed us satirical prints documenting the first global stock bubble, three centuries ago.
