The Delivery of Market Timing Services: Newsletters Versus Market Timing Funds
Document Type
Article
Publication Date
6-1990
ISSN
1042-9573
Publisher
Elsevier
Language
en-US
Abstract
We examine delivery systems that disseminate market timing information either through newsletters or by setting up timing funds in which investors can invest. Absent market imperfections, both systems produce the same result. With restrictions on borrowing, or with other nonlinearities, the newletter system is superior. This result does not depend on the cost of obtaining information or uncertainty about, or the manipulation of, the quality of the information. Institutional restrictions on borrowing, and preferences that lead to nonlinear responses to information signals, provide one explanation for the plethora of market timing newsletters and the paucity of market timing funds.
Recommended Citation
Alex Kane & Stephen G. Marks,
The Delivery of Market Timing Services: Newsletters Versus Market Timing Funds
,
in
1
Journal of Financial Intermediation
150
(1990).
Available at:
https://doi.org/10.1016/1042-9573(90)90003-X
Working paper version
Please note the file available on SSRN may not be the final published version of this work.
