Attention, Social Interaction, and Investor Attraction to Lottery Stocks

We test the hypothesis that retail investors’ attraction to lottery stocks induces overvaluation, and is amplified by high attention and social interactions. The lottery premium (negative abnormal returns) is stronger for high-retail-ownership stocks—especially those that also have high analyst coverage, high latest absolute earnings surprises, or extreme recent positive returns. The premium is also larger…

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One Of These Is Not The Same

This post follows on in a somewhat tangential way from my earlier posting on the notion that retail is dead and there is a recession on the horizon – the chart action of retailers seems to show a different story. But financial journalists have bever been known to let facts get in the way of…

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Apparently retail is dead….

According to financial journalists and various others, we are staring into the abyss of a recession and things will never be good again. So here is a question, why then are almost all listed retail stocks showing strong gains for the YTD. The exception being RFG which has apparently been naughty with its franchisees. Word…

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