The Delivery of Market Timing Services: Newsletters Versus Market Timing Funds / Alex Kane.

By:

Kane, Alex

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Technical Working Paper Series (National Bureau of Economic Research) ; no. t0075.Publication details: Cambridge, Mass. National Bureau of Economic Research 1991.Description: 1 online resource: illustrations (black and white)Subject(s):

G - Financial Economics

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: This paper examines the dissemination of market timing information (signals on the overall performance of risky assets relative to the risk free rate). We consider two delivery systems. Under the newsletter delivery system market timing information is disseminated solely through newsletter. Under the fund delivery system, timers set up timing funds in which investors can invest. In the absence of market imperfections we find that both systems produce the same result. With restrictions on borrowing or with other nonlinearities we find the newsletter system to be superior. This is one possible explanation for the plethora of market timing newsletters and the paucity of market timing funds.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber t0075 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber t0072 The R&D Master File Documentation /	nber t0073 Tests For Unit Roots: A Monte Carlo Investigation /	nber t0074 Endogenous Output in an Aggregate Model of the Labor Market /	nber t0075 The Delivery of Market Timing Services: Newsletters Versus Market Timing Funds /	nber t0076 Kolmogorov-Smirnov Tests For Distribution Function Similarity With Applications To Portfolios of Common Stock /	nber t0077 Super Contact and Related Optimality Conditions: A Supplement to AvinashDixits /	nber t0078 Full Information Estimation and Stochastic Simulation of Models with Rational Expectations /	Next

August 1991.

This paper examines the dissemination of market timing information (signals on the overall performance of risky assets relative to the risk free rate). We consider two delivery systems. Under the newsletter delivery system market timing information is disseminated solely through newsletter. Under the fund delivery system, timers set up timing funds in which investors can invest. In the absence of market imperfections we find that both systems produce the same result. With restrictions on borrowing or with other nonlinearities we find the newsletter system to be superior. This is one possible explanation for the plethora of market timing newsletters and the paucity of market timing funds.