Robert Stambaugh - Faculty Research in Knowledge@Wharton

Why Stock-price Volatility Should Never Be a Surprise, Even in the Long Run

Wed, 29 Apr 2009 14:19:24 EST

Equities are subject to much wider price swings than previously understood, according to a recent paper co-authored by Wharton finance and economics professor Robert Stambaugh. The research adds a new perspective to the work of Wharton finance professor Jeremy J. Siegel, author of the book Stocks for the Long Run, which says stock returns more than offset risks if you stay with the market through its ups and downs. In a recent interview with Knowledge@Wharton, the professors described their views about the market's long-term behavior.

How Can Employers Improve Defined Contribution Plans?

Wed, 18 Oct 2006 16:48:45 EST

If 401(k)s and similar plans are the main way Americans invest for retirement, how can employers improve them? By making enrollment automatic, minimizing the use of the employer's stock, expanding the role of annuities and improving employees' financial knowledge, according to a set of recommendations issued by the Financial Economists Roundtable, a group of about 50 prominent economists, including several Wharton faculty members.

Don't Sweat the Inverted Yield Curve: No One Really Knows What It Means

Wed, 25 Jan 2006 15:13:16 EST

Consider the inverted yield curve as the equivalent of an economic bogeyman. It's when the natural order up-ends and short-term interest rates are higher than long-term ones. The Treasury bond yield curve inverted December 27 for the first time in five years. That gave shudders to those who see the phenomenon as a harbinger of recession. And yet, the U.S. economy is strong, and surveys show most forecasters think it will stay that way. So what does the inverted yield curve really mean? Wharton professors offer some perspectives.

Risks and Costs of Socially Responsible Investing

Wed, 13 Aug 2003 00:00:00 EST

Socially responsible investors don't want their money to support companies that do things they disapprove of, such as selling tobacco, alcoholic beverages or weapons. They may be willing to sacrifice some financial returns for their convictions -- but how much must they give up? In one of the first studies of socially responsible investing on a risk-adjusted basis, Wharton's Christopher C. Geczy, Robert F. Stambaugh and David Levin show that index-style investors may pay a modest price for investing in socially responsible funds. For investors who favor actively managed funds, though, the cost could be much higher.

Are Analysts Playing Us for Suckers?

Wed, 04 Jul 2001 00:00:00 EST

Wall Street analysts relentlessly cheered the dot-com mania that pushed technology stocks to stunning gains in 1999. But even after those stocks went into a tailspin in 2000, few analysts urged investors to sell. Such behavior has drawn the attention of both the Securities and Exchange Commission and the U.S. Congress, which held hearings on the subject in mid-June.

A Fresh Look At Mutual Funds� Performance Data

Wed, 28 Mar 2001 00:00:00 EST

For mutual fund analysts, new insights into evaluating a fund�s performance don�t come along every day. Lately, though, financial experts at Wharton and other schools have collaborated on research that challenges some long-held notions about which funds are best for investors. Included in that research is a paper by Lubos Pastor of the University of Chicago and Wharton�s Robert Stambaugh on how to improve standard benchmarks used to predict fund performance.