One Factor You May Be Leaving Out of Your Financial Decision-Making
Do your choices reflect the marginal utility of money for you?
One Factor You May Be Leaving Out of Your Financial Decision-MakingWhy cash profits are the best predictor of stock performance
Firms that are more profitable today on a cash basis could earn higher future returns.
Returns for a portfolio of companies with strong cash-based earnings were more than double those for a portfolio based on operating profit or accruals.
Ray Ball, Joseph Gerakos, Juhani Linnainmaa, and Valeri Nikolaev, “Accruals, Cash Flows, and Operating Profitability in the Cross Section of Stock Returns,” Fama-Miller working paper, April 2015.
Do your choices reflect the marginal utility of money for you?
One Factor You May Be Leaving Out of Your Financial Decision-MakingNobel laureate Douglas W. Diamond and former Boston Fed president Eric Rosengren visit the Capitalisn’t podcast to discuss the collapse of Silicon Valley Bank.
Capitalisn’t: Silicon Valley Bank—The End of Banking As We Know It?Global investors’ appetite for dollar-denominated assets has big implications for currency markets and the US economy.
How Much Does the US Dollar’s Primacy Depend on Investor Demand?Your Privacy
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