Mark Zuckerberg is reported to have said “A squirrel dying in front of your house may be more relevant to your interests right now than people dying in Africa”. That may be true of squirrels in distress, but surely, when it comes to business news, which is available almost instantaneously worldwide, this news is incorporated into share prices by global and local investors at the same time.
Once again, Klement comes through and shared another fascinating scientific study we probably all would've otherwise missed.
It's always interesting to see when "conventional wisdom" on the local information edge we always suspect exists is supported by data. Living in and around a "company town" clearly has to present opportunities to assemble lots of little pieces of non-material, non-public information into a mosaic that reveals a larger truth.
That said, I wonder if this exploitable "home field advantage" will hold or not. As public markets have globalized, an odd situation has emerged where many German, French, other European, and Asian companies now issue earnings releases and hold management calls exclusively in English, often shifting the latter to accommodate US investors' time zone convenience, leaving local investors to (ironically) have to translate stuff back into the local lingo, and then watch the stock flail around on local exchanges around for six-eight hours or so pending further information.
Sadly, over time this might actually dissuade locals from investing locally, as they start to feel even their "local champions" are now only catering to a fan club of which they no longer feel they're members :-(
Once again, Klement comes through and shared another fascinating scientific study we probably all would've otherwise missed.
It's always interesting to see when "conventional wisdom" on the local information edge we always suspect exists is supported by data. Living in and around a "company town" clearly has to present opportunities to assemble lots of little pieces of non-material, non-public information into a mosaic that reveals a larger truth.
That said, I wonder if this exploitable "home field advantage" will hold or not. As public markets have globalized, an odd situation has emerged where many German, French, other European, and Asian companies now issue earnings releases and hold management calls exclusively in English, often shifting the latter to accommodate US investors' time zone convenience, leaving local investors to (ironically) have to translate stuff back into the local lingo, and then watch the stock flail around on local exchanges around for six-eight hours or so pending further information.
Sadly, over time this might actually dissuade locals from investing locally, as they start to feel even their "local champions" are now only catering to a fan club of which they no longer feel they're members :-(