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

Intangible return using Sale2P

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1956Q3 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
−1.16%
95% interval −7.39% to 4.89%
Next year
2026Q4–2027Q3
−1.09%
95% interval −7.38% to 4.97%
Next five years
2026Q4–2031Q3
−0.82%
95% interval −7.35% to 5.34%

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

−87% since 1956Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1956Q3–2024Q4 −0.14% 24.53% −0.01 −0.05
2020Q1–2024Q4 4.60% 40.36% 0.11 0.25
2024Q1–2024Q4 −21.84% 19.16% −1.14 −1.14

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 −0.05 −0.30 – 0.20 0.64
2026Q4–2027Q3 −0.04 −0.28 – 0.20 0.63
2026Q4–2031Q3 −0.03 −0.25 – 0.20 0.59
Category
Long term reversal
Form
Continuous
Data
Accounting
Sorted on
Low minus high
Names per leg
249 long / 265 short median · 40 at the 10th pctile
Original sample
1968–2003