Mean reversion and overreaction
When prices stretch too far and snap back, from multi-year losers to one-week reversals.
| Citation | Paper | Access | Difficulty | Score |
|---|---|---|---|---|
| Lo & MacKinlay (1990) | When Are Contrarian Profits Due to Stock Market Overreaction? Review of Financial Studies | Free | Technical | 0 |
| Jegadeesh (1990) | Evidence of Predictable Behavior of Security Returns Journal of Finance | Paywalled | Moderate | 0 |
| Lehmann (1990) | Fads, Martingales, and Market Efficiency Quarterly Journal of Economics | Paywalled | Technical | 0 |
| Fama & French (1988) | Permanent and Temporary Components of Stock Prices Journal of Political Economy | Paywalled | Technical | 0 |
| Poterba & Summers (1988) | Mean Reversion in Stock Prices: Evidence and Implications Journal of Financial Economics | Free | Technical | 0 |
| Lo & MacKinlay (1988) | Stock Market Prices Do Not Follow Random Walks: Evidence from a Simple Specification Test Review of Financial Studies | Free | Technical | 0 |
| Bondt & Thaler (1985) | Does the Stock Market Overreact? Journal of Finance | Paywalled | Easy read | 0 |