How do investors discover what to buy? How do we find investment opportunities?
In Does Investor Attention Affect Stock Prices?, Researchers found that small cap stocks with ticker symbols similar to larger cap stocks went up in sympathy with their larger cap brothers. In fact, these attention portfolios saw 1-3% abnormal returns.
Pretty interesting, so I invited one of the authors of the study, Vallapuzha Sandhya onto Tradestreaming radio to discuss her findings with us.