Mr. Seyhun found in his research that thecorrelation between insider sentiment and the stock market was markedly higher when he focused on other categories of insiders besides the largest shareholders.
In a release Alinean sent out after the article appeared, entitled "Alinean Research Shows That IT Does Matter, " the firm notes that its research in fact shows no correlation between IT spending per se--at any level--and corporate performance.
Higher correlation also hurts the few managers that still engage in fundamental research: what is the point of forecasting earnings and understanding businesses if all stocks, good or bad, trade as one?