IntanCFP · Long term reversal · Daniel and Titman (2006)

Intangible return using CFtoP

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1956Q1 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
0.37%
95% interval −4.92% to 5.55%
Next year
2026Q4–2027Q3
0.40%
95% interval −4.94% to 5.58%
Next five years
2026Q4–2031Q3
0.53%
95% interval −5.00% to 5.78%

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

−50% since 1956Q1 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1956Q1–2024Q4 1.24% 21.12% 0.06 0.49
2020Q1–2024Q4 −0.80% 34.40% −0.02 −0.05
2024Q1–2024Q4 −11.46% 15.24% −0.75 −0.75

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.02 −0.23 – 0.26 0.44
2026Q4–2027Q3 0.02 −0.23 – 0.26 0.44
2026Q4–2031Q3 0.03 −0.20 – 0.26 0.41
Category
Long term reversal
Form
Continuous
Data
Accounting
Sorted on
Low minus high
Names per leg
219.5 long / 219 short median · 40 at the 10th pctile
Original sample
1968–2003