Modeling Market Success
Last night, I was sweating a close win in my fantasy football league when a friend passed along some information on the research efforts of Bob Haugen. Mr. Haugen is a PhD and former academic who now offers a research service that has delivered some pretty solid results. I have come across his work before, but after reading the email form my friend I went back to reacquaint myself with his work.
Haugen has helped institutional investors improve returns by using a multi-factor model for stock selection. His model's major factors include many value characteristics, such as the price-to-cash flow ration, price to earnings and price to sales, as well as price to book value. The model also incorporates earnings growth, and shows that dividends and positive returns lead to positive expectations for stock selection....415 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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