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Don't index funds and completely random selections ALSO outperform most professional stock pickers?
by bh42 16y ago
Don't index funds and completely random selections ALSO outperform most professional stock pickers?
- GFischer 16y agoHere's an answer: http://www.studyfinance.com/jfsd/pdffiles/v8n1/liang.pdf http://www.studyfinance.com/jfsd/pdffiles/v8n1/liang.pdf Apparently the random stocks outperform the "pros" picks after 6 months (the pros have the edge in the short term) Actual quote from the study: "Results suggest that the pros selection statistically outperforms the random selection only in the one-week period. Over a six-month holding period, the random stocks perform better than the pros recommendations."