Experience Stern | News & Events

Excerpt from TheStreet.com -- "If you want to make more money from trades linked to corporate earnings, then head for the Twitter-sphere. It could give you a better result than Wall Street's best, according to new research. The findings come from a recent study by scholars at New York University, Arizona State University and the University of Toronto. The paper, titled  'Can Twitter Help Predict Firm-Level Earnings and Stock Returns?' finds that the wisdom of the Twitter crowd can be a pathway to trading riches."

Excerpt from Los Angeles Times -- "'If brand-name manufacturers do not get their investment worth, guess what — no new drugs,' said Rosa Abrantes-Metz, an adjunct associate professor at New York University's Leonard N. Stern School of Business. 'And then who loses? All of us.'"

Excerpt from Reuters -- "This is a fundamental shift in how companies and entrepreneurs operate. This is going to affect the venture capital industry. It already is affecting [it], in some ways. It's going to affect how people who want to raise money think about raising money. This is a very powerful means of potential investors and entrepreneurs coming together, bypassing... the angel investors, the venture capitalists."

Excerpt from Project Syndicate -- "An assessment of sovereign risk that is systematic and data-driven could help to spot the risks that changing global headwinds imply. To that extent, it provides exactly what the world needs now: an approach that removes the need to rely on the ad hoc and slow-moving approach of ratings agencies and the noisy and volatile signals coming from markets."

Excerpt from SF Weekly -- "For real estate developers, EB-5 is a great deal. Where a traditional financier might demand a significant return on investment, an EB-5 investor gets his money's worth courtesy of the US government. Earning a return is secondary, and both the Securities Exchange Commission and an academic study by the NYU Stern Center for Real Estate Finance Research have found that EB-5 investors accept lower interest rates on their investments than they would if the green card weren't offered."

Excerpt from Hub Magazine -- "The consumer always wins. If you give consumers three choices — a great e-commerce site with no stores, a great retailer with great stores but bad digital, or the multi-channel retailer — they will say door number three. The future looks more like Williams Sonoma, Sephora or Macy’s than it does Amazon."

Excerpt from Project Syndicate -- "Organizations, businesses, and people all have to adapt to the technologically driven shifts in our economies’ structure. These transitions will be lengthy, rewarding some and forcing difficult adjustments on others, and their productivity effects will not appear in aggregate data for some time. But those who move first are likely to benefit the most."

Excerpt from Foreign Policy -- "Our research suggests that, contrary to perception, China’s stock prices have been surprisingly informative about future corporate earnings and have been generating useful signals for managers. Specifically, the predictive power of prices for future earnings in China is comparable to that in the United States, and the strength of that predictive power is significantly correlated with corporate investment efficiency."

Excerpt from The Wall Street Journal -- "The other great problem is the ability of pharmaceutical and biotechnology companies to charge whatever the market will bear. According to a January 2015 analysis by Aswath Damodaran, a professor at New York University’s Stern School of Business, the average yearly profit margin for the top 151 pharmaceutical companies world-wide is more than 24% and for the top 400 biotech firms it is nearly 23%."

Excerpt from PIX 11 News -- "'Just remember to think about the long run,' Dr. White said in an interview. 'In the long run, we’ve got a solid economy.'"

Excerpt from Marketplace -- "Jennifer Carpenter is associate professor of finance at New York University's Stern School of Business, and along with professor Robert Whitelaw and Fangzhou Lu recently authored a paper in which 'we find that against all odds, China’s stock prices are surprisingly informative about future corporate earnings,' says Carpenter. 'It’s comparable to levels of price informativeness that you see in the U.S.'"

Excerpt from The Huffington Post -- "As for the markets, experts in market behavior generally expect movements like those we have seen to overshoot before the value investors are attracted in to stabilize the markets. If the Shanghai composite index gets to 2,500, the price-earnings ratios and valuations will surely look attractive for the longer-term investor."

Excerpt from Forbes -- "I also believe that Amazon cannot survive as a pure-play retailer. Stores are the new black in the world of e-commerce. We’ve discovered these incredibly flexible robust warehouses called stores … retailers are not befuddled prey waiting around to be disrupted. They are in fact growing their e-commerce businesses."

Excerpt from Investor Wired -- "The idea of a volatility index, and financial instruments based on such an index, was first developed and described by Prof. Menachem Brenner and Prof. Dan Galai in 1986. Professors Brenner and Galai published their research in the academic article 'New Financial Instruments for Hedging Changes in Volatility,' which appeared in the July/August 1989 issue of Financial Analysts Journal."

Excerpt from NY1 News -- "'There is a separate whole academic debate about whether pension plans of any kind should be investing in the stock market because of this kind of volatility,' said Lawrence White, a professor at the NYU Stern School of Business."

Excerpt from Deutsche Welle -- "There's a very complex set of factors that changes when you shift away from full-time salaried work towards these more flexible arrangements. In the United States right now, a lot of the social safety net, a lot of the benefits - ranging from steady salary and paid vacations to insurance and different kinds of health benefits - all of that is connected to being employed full-time, and it's much better if you're an employee. And as more and more work becomes flexible, it happens that these new sharing economy providers don't have access to the same benefits as fulltime employees do."

Excerpt from WIRED -- "Roy Smith, a professor of international business at the Stern School of Business at New York University, says that the US market may have been due for a correction. 'Tech stocks may have been somewhat overvalued anyway, [especially] if they were counting on the huge Chinese retail market to suck up the products and services of the big US tech firms,' he says."

Excerpt from Entrepreneur -- "As Ghose explains, investors may determine that investing $1 million across 10 startups might make more sense than investing $1 million in stocks during a bear market. 'For some, it will make more sense to invest in the stock market, but for some it will actually make more sense to invest in startups,' he says."

Excerpt from CCTV -- "I think [Uber has] demonstrated the ability to scale more rapidly than any other tech platform I've seen. They have... a really well-developed organizational machine that allows them to replicate success in one city across multiple cities and to deal with the local regulatory challenges, so I wouldn't be surprised if they pulled it off, but I think in terms of facing competition, China is probably the toughest market for Uber around the world."

Excerpt from Bloomberg -- "[The Syriza party] will try [to come up with a proposed leader], but it will be very difficult for them, so this is one of the reasons why he's doing the election very quickly. Another reason is that the heavy taxes that will come with the agreement have not been fully implemented yet and therefore the public doesn't feel them so much yet, and won't feel them by September. So, that's the second reason [for] doing it very, very quickly. So, these are reasons that are very good for Mr. Tsipras, but at the same time, they are very bad for the Greek economy. The Greek economy is ravaged by political and economic uncertainty."

Excerpt from CNBC -- "The elections add significant uncertainty to an economy ravaged by political and economic uncertainty. Tsipras' administration has been a disaster for the economy. Six months of fruitless negotiations were followed by closed banks, capital controls and very tight cash withdrawal limits. Consumption, as well as imports and exports (that mostly depend on imported raw materials), have fallen dramatically."

Excerpt from Ad Age -- "Now the image of Amazon as a grueling place to work, and Bezos as an insensitive taskmaster, is harder to shake and will probably prove troublesome for some time. While in the past such a report may not have been as damaging, today's consumers -- led by millennials -- are different. They care more about what sort of culture is behind the brands they like."

Excerpt from The New York Post -- "'Ironically, as the US economy has picked up some steam and the Fed finally looks to raise rates, we see weakness in global markets weighing on stock prices,' said New York University economics professor Joe Foudy, who noted that nearly half of all S&P 500 revenue now comes from overseas. 'The stock market reflects that.'"

Excerpt from The East Hampton Star -- "Many nonaffluent Americans know that a redistribution of wealth, such as Hillary Clinton’s proposal to increase capital gains taxes, is less likely to increase their standard of living than an increase in the economic pie for everyone. So, candidates must immerse themselves in ways to stimulate entrepreneurship and dramatically and quickly increase our gross domestic product and jobs."
 

Excerpt from TIME -- "Even as its growth slows to a more sustainable pace of around 7% this year, China, a voracious consumer of oil, gas, metals and minerals, will benefit significantly from lower commodity prices. Global crude prices are half what they were a year ago, and slower demand in China, tepid growth in Europe, resilient supply from North America and increased production in Iraq and Iran (as sanctions are lifted) will likely keep oil cheap for the next few years. Another parachute: China holds about $4 trillion in foreign currency reserves, more than twice as much as the No. 2 holder, Japan. That’s a sizable rainy-day fund to tap should the economy need emergency stimulus. It’s also a powerful fuel for massive investments overseas that create opportunities for Chinese companies, jobs for its workers and influence for its policymakers across the developing world."