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The Delivery of Market Timing Services: Newsletters Versus Market Timing Funds

28 Pages Posted: 27 Jun 2007 Last revised: 17 Sep 2010

Alex Kane

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS)

Stephen Gary Marks

affiliation not provided to SSRN

Date Written: August 1991

Abstract

This paper examines the dissemination of market timing information (signals on the overall performance of risky assets relative to the risk free rate). We consider two delivery systems. Under the newsletter delivery system market timing information is disseminated solely through newsletter. Under the fund delivery system, timers set up timing funds in which investors can invest. In the absence of market imperfections we find that both systems produce the same result. With restrictions on borrowing or with other nonlinearities we find the newsletter system to be superior. This is one possible explanation for the plethora of market timing newsletters and the paucity of market timing funds.

Suggested Citation

Kane, Alex and Marks, Stephen Gary, The Delivery of Market Timing Services: Newsletters Versus Market Timing Funds (August 1991). NBER Working Paper No. t0075. Available at SSRN: https://ssrn.com/abstract=994513

Alex Kane (Contact Author)

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS) ( email )

9500 Gilman Drive
La Jolla, CA 92093-0519
United States

Stephen Gary Marks

affiliation not provided to SSRN

No Address Available

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