Earlier in the year, I showed the chart of analyst forecasts and how they struggle to get even the direction of equity returns (positive or negative) right. Strategists are no better than the flip of a coin in getting the direction of markets right. Yet, it seems that it is possible to get the direction of returns right and that if it is done the right way, one could earn excess returns in the order of 1% per month.
On Twitter, there was a meme being passed around during Covid showing two guys. One guy said, “when stocks go up, I buy. When stocks go down, I sell” the other guys said, “I can’t read”. Perhaps the strategy is as “simple” as that as, put simply, that’s what those professors found
On Twitter, there was a meme being passed around during Covid showing two guys. One guy said, “when stocks go up, I buy. When stocks go down, I sell” the other guys said, “I can’t read”. Perhaps the strategy is as “simple” as that as, put simply, that’s what those professors found