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THE BIO OF EUGENE HAWKINS & STATEMENT OF OBJECTIVES
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Academic & Job Experience ::
I obtained a BA degree
from the University of the South and an MBA from the University
of North Carolina. After a 35 year career as a financial analyst
on Wall Street, I’ve retired to a small town on the Eastern
Shore of Maryland. During my time on Wall Street, both as an
employee of several brokerage firms (e.g., Drexel, Lehman,
PaineWebber) and head of my own consulting firm, Investment
Analytics, I wrote a number of articles (and/or research papers)
relevant to the stock market on both the practical and
theoretical sides.Since
retirement, I’ve continued to write and have now compiled a
considerable inventory of “papers,” only three of which have
been submitted for publication. One of these, “Earnings
Expectations and Security Prices,” was published in the
Financial Analysts Journal and has often been cited by other
writers in the field of financial analysis. The other two were
conditionally accepted by the Financial Analysts Journal and The
Journal of Portfolio Management. I did not pursue publication of
them because of personal considerations around the time of their
acceptance when all of my energies were devoted to starting my
consulting firm. |
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:: Present Works ::
Lately, however, I have
had time to do a great deal of writing and the opportunity to
enhance my existing group of papers. I feel the time has come to
publish them on the internet rather than trying to put a book
together. If, on the other hand, I were preparing a book I would
title it, "Science versus Reality on the New York Stock
Exchange", which is the overriding theme of this website.
It is hoped the site will be of interest to practitioners and
academics on both sides of the aisle regarding the validity and
usefulness of Modern Portfolio Theory, the Efficient Market
Hypothesis and the Capital Asset Pricing Model. Most of the
papers presented, however, do not take on the paradigms of MPT,
EMH and CAPM directly. Rather they approach those disputed
theories by providing actual examples that make the “three
horsemen” of Modern Capital Market Theory look suspect in a
number of ways. |
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The Objective ::
Thus, the real objective of the website is to shore up
behavioral finance by giving as many practical examples as
possible to show that John Maynard Keynes (not to mention the
father of security analysis, Benjamin Graham) were as right
about what drives the stock market in their assessments made
years ago as they are today. And if those two were correct, then
Modern Capital Market Theory is wrong about many things.
In short, I am casting my lot with the proponents of behavioral
finance. In that regard, I understand that two of the best books
on the subject (which I have not had a chance to read) are
Beyond Greed and Fear: Finance and the Psychology of Investing,
by Hersh Sherfrin and Advances in Behavioral Finance, edited by
Richard Thaler. Three books that I have read exhaustively (and
to which I am more or less responding here) are: Modern
Developments in Investment Management, edited by James Lorie and
Richard Brealey and The Stock Market: Theories and Evidence, by
James Lorie and Mary Hamilton and Capital Ideas by Peter
Bernstein. |
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