“Buy low and sell high” says the old adage about investing in the stock market. But a relatively new type of investment fund is luring unsophisticated investors into buying when values are at their highest, resulting in losses almost immediately, a new study has found.
The lure? Buying into trendy investment areas like cannabis, cybersecurity and work-from-home businesses.
“As soon as people buy them, these securities underperform as the hype around them vanishes,” said Itzhak Ben-David, co-author of the study and professor of finance at The Ohio State University’s Fisher College of Business. [Read more…] about Want a hot stock tip? Avoid this type of investment fund
Related Posts
- 32A startup company called Tau, which specializes in materials science and automotive electrification, says it has delivered a prototype wire that enables electric motors to double their power output without changing their size. The technology could mean that electric vehicles and machines of all kinds can keep going for longer…
- 30As part of an international collaboration, Aalto University researchers have shown that our common understanding of what attracts visual attention to screens, in fact, does not transfer to mobile applications. Despite the widespread use of mobile phones and tablets in our everyday lives, this is the first study to empirically…