There are several things that can create an alpha - stock buybacks are one. High dividend yields are another, especially nowadays because the stock market yields more than the banks and the tenure treasury. But by and large, it tends to be companies with a strong cash flow, rising sales, accelerated earnings, a profit margin expansion.
When I write for 'n+1,' I begin by doing a lot of reading, to try to convince myself I'm not stupid. Then I scribble down a paragraph here, a paragraph there, when a notion strikes. Then I see if I can arrange those notions in a way that yields an argument.
When the yields of biofuels per hectare are known, one can easily calculate how much of the energy of the sunlight is stored in the biofuels.
Technology has allowed us to have more drought-resistant crops. The spotty nature of drought, the spotty nature of rains can sometimes result in better yields than anticipated.
Rising interest rates are considered bad for stocks because they raise the cost of doing business and depress corporate earnings and because higher yields make bonds relatively more attractive than stocks to investors.
