DelNetFin · Investment alt · Richardson et al. (2005)

Change in net financial assets

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1952Q3 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
2.52%
95% interval 0.21% to 4.79%
Next year
2026Q4–2027Q3
2.52%
95% interval 0.20% to 4.80%
Next five years
2026Q4–2031Q3
2.53%
95% interval 0.15% to 4.82%

Forecast made 16 Sep 2026, conditioning on this portfolio's OAP returns, which end 2024Q4. The 7 quarters between then and 2026Q4 are unobserved and are integrated out under the model.

Cumulative market-adjusted return

+444% since 1952Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1952Q3–2024Q4 2.86% 10.24% 0.28 2.38
2020Q1–2024Q4 4.69% 16.26% 0.29 0.64
2024Q1–2024Q4 −7.42% 21.20% −0.35 −0.35

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.25 0.02 – 0.47 0.02
2026Q4–2027Q3 0.25 0.02 – 0.47 0.02
2026Q4–2031Q3 0.24 0.01 – 0.47 0.02
Category
Investment alt
Form
Continuous
Data
Accounting
Sorted on
High minus low
Names per leg
398.5 long / 397 short median · 37 at the 10th pctile
Original sample
1962–2001