Buy the dip?

IF 2.1 3区 经济学 Q2 BUSINESS, FINANCE
Stefano Bonini, Thomas Shohfi, Majeed Simaan
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引用次数: 0

Abstract

We study the fundamental properties of the “Buy the dip” (BTD) investment heuristic. Looking into cash holdings versus a stock market exchange-traded fund, we find that BTD does not necessarily maximize investors' real terminal wealth and is sensitive to market conditions at the beginning year of investment. While under certain conditions, BTD may improve risk-adjusted performance over a passive investment policy or a classical dollar-cost averaging approach, its optimality is subject to estimation risk. Given the vast popularity of BTD, our results have important implications for asset managers and retail investors alike.

买入?
我们研究了 "逢低买入"(BTD)投资启发式的基本特性。通过观察现金持有量与股票市场交易所交易基金的对比,我们发现 "逢低买入 "并不一定能使投资者的实际终端财富最大化,而且对投资起始年的市场条件非常敏感。虽然在某些条件下,BTD 可能会比被动投资政策或传统的平均美元成本法提高风险调整后的绩效,但其最优性存在估计风险。鉴于 BTD 大受欢迎,我们的研究结果对资产管理公司和散户投资者都具有重要意义。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
European Financial Management
European Financial Management BUSINESS, FINANCE-
CiteScore
4.30
自引率
18.20%
发文量
60
期刊介绍: European Financial Management publishes the best research from around the world, providing a forum for both academics and practitioners concerned with the financial management of modern corporation and financial institutions. The journal publishes signficant new finance research on timely issues and highlights key trends in Europe in a clear and accessible way, with articles covering international research and practice that have direct or indirect bearing on Europe.
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