Tuesday, September 24, 2013

Passive Investing - The Evidence, Part 1: The Outperformance Myth (+play...

2 comments:

JimTan said...

I'm making the obvious correlation between tight supply and sustained higher prices. Don't know why you can't make the simple connection?

I work with data that is consistent with the model. And, the model has to be verified by the results.

The bottom line is that I'm right and you're wrong.


The efficient-market hypothesis is the base model for financial markets. It's the first thing (kinda) you learn in business school.

In real live, the highly paid jockeys are just running around, exchanging rumours and chasing the markets. That's why hedge fund managers feel the need to cheat with insider information.

In terms of RE, the theory suggests that it is dangerous to try to time market cycles. So, listen up market bears. That's why you keep getting burned.

JimTan said...

Ignore the previous post.

The efficient-market hypothesis is the base model for financial markets. It's the first thing (kinda) you learn in business school.

In real live, the highly paid jockeys are just running around, exchanging rumours and chasing the markets. That's why hedge fund managers feel the need to cheat with insider information.

In terms of RE, the theory suggests that it is dangerous to try to time market cycles. So, listen up market bears. That's why you keep getting burned.