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http://www.marketwatch.com/story/technicians-vs-analysts-in-a-stock-picking-slapdown-who-wins-2015-09-04?dist=beforebell
This groundbreaking study, which just began circulating in academic circles, was conducted by Doron Avramov and Haim Levy, finance professors at the Hebrew University of Jerusalem; and Guy Kaplanksi, a finance professor at Bar-Ilan University. The focus of their study were a thousand pairs of recommendations made between November 2011 and December 2014 on the TV show “Talking Numbers,” which is jointly broadcast by CNBC and Yahoo YHOO, -1.44% . The first half of each pair was a recommendation from a top technician about a stock in the news; the second half was a recommendation about that same stock from a leading fundamental analyst.
In retrospect, Professor Avramov told me in an interview, it’s curious that no one before bothered to analyze these recommendations, since the show provides an ideal laboratory for comparing the relative worth of the two investment approaches.
The researchers measured the performance of each recommendation beginning with its closing price on the day the show first aired. That’s a crucial methodological detail, since that means the researchers are excluding the price impact of the recommendations in the first minutes after the show airs.
This groundbreaking study, which just began circulating in academic circles, was conducted by Doron Avramov and Haim Levy, finance professors at the Hebrew University of Jerusalem; and Guy Kaplanksi, a finance professor at Bar-Ilan University. The focus of their study were a thousand pairs of recommendations made between November 2011 and December 2014 on the TV show “Talking Numbers,” which is jointly broadcast by CNBC and Yahoo YHOO, -1.44% . The first half of each pair was a recommendation from a top technician about a stock in the news; the second half was a recommendation about that same stock from a leading fundamental analyst.
In retrospect, Professor Avramov told me in an interview, it’s curious that no one before bothered to analyze these recommendations, since the show provides an ideal laboratory for comparing the relative worth of the two investment approaches.
The researchers measured the performance of each recommendation beginning with its closing price on the day the show first aired. That’s a crucial methodological detail, since that means the researchers are excluding the price impact of the recommendations in the first minutes after the show airs.
