Stocks

Equities microstructure: earnings moves, float, short interest, rebalancing flow, spreads, dark pools.

·9 min read

How Earnings Announcements Move Stock Prices Overnight

Earnings announcements typically produce a large fraction of their total stock price movement in after-hours and pre-market trading, rather than during regular hours. This happens because market participants

·11 min read

Post-Earnings Announcement Drift: Forty Years of Evidence and the Current Debate

Post-earnings announcement drift (PEAD) refers to the tendency for a stock's price to continue moving in the direction implied by an earnings surprise in the days and weeks

·8 min read

Volatility and the VIX: What the Index Measures and What It Does Not

The Volatility Index (VIX) estimates the 30-day implied volatility of S&P 500 options and is frequently cited as a market-wide fear gauge. Despite its widespread use as a

·9 min read

Dark Pools: What They Are and What They Are Not

**Abstract** Dark pools are electronic trading venues regulated by the Securities and Exchange Commission that execute orders without displaying them to the public in real time. This paper

·9 min read

Short Interest, Borrow Fees, and Short Squeezes

Short interest represents the quantity of shares sold short and not yet closed, typically reported as a count and percentage of shares outstanding. Borrow fees are the annualized

·8 min read

Index Rebalancing and Predictable Order Flow

Index rebalancing creates temporary but measurable order flow imbalances when passive funds adjust holdings to track index changes. Because index reconstitution dates and added/removed securities are announced in

·6 min read

The Diversification Threshold: Why 20-30 Stocks Are Enough (And More Isn't)

Why holding 20-30 diversified stocks eliminates company-specific risk but leaves you exposed to market risk—and why that tradeoff matters.

·7 min read

Why Factor Performance Decays: Understanding Alpha Decay and Crowding in Long-Term Investing

Factor premiums decay as more investors chase the same signals. Learn why momentum returns 2% today vs 10% in the 1990s.

·7 min read

Earnings Yield vs. Earnings Power: How Retention Ratio Reveals Which Cheap Stocks Actually Reinvest for Growth

Earnings yield reveals bargains, but retention ratio shows if companies reinvest for real growth.

·6 min read

Beyond P/E: Why Free Cash Flow Yield Separates Bargains from Value Traps

Beyond P/E: Why Free Cash Flow Yield Separates Bargains from Value Traps

·7 min read

Market Cycles Within Cycles: Why Portfolio Rebalancing Traps Long-Term Investors Into Selling Cheap

Small-cap undervaluation cycles and rebalancing mechanics: why the cheapest assets often get sold during portfolio resets.

·7 min read

Retention Ratio and ROE: Why Earnings Reinvestment Unlocks Long-Term Stock Growth

Earnings reinvestment + ROE drive sustainable growth. Learn why retention ratio matters more than dividend yield.

·6 min read

Dividend Growth vs. Dividend Yield: Why Long-Term Investors Pick the Wrong Metric

Why dividend growth beats dividend yield: data on reinvestment compounding and long-term returns.

·4 min read

Dollar-Cost Averaging vs. Lump-Sum Investing: The Data and When Each Works

DCA vs. lump-sum: Vanguard data shows lump-sum wins 64% of the time. But behavioral risk matters more than raw returns.