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INACTIVITY STRATEGY Mr. Malkiel has long said that no one can consistently pick winning stocks and bonds.
HOW many mutual fund managers can consistently pick stocks that outperform the broad stock market averages — as opposed to just being lucky now and then?
Many studies have shown this to be more successful than "active management," largely because few active managers can consistently pick market-beating investments.
Humans can't consistently pick the right stocks or call markets, foretell political or geopolitical events or successfully predict changes in interest rates or commodity prices.
In contrast to previous studies that found that it was impossible to consistently pick stocks that outperform the market, Professor Wermers shows that not only is it possible, but also that it is not particularly unusual.
They also assumed that no fund manager could consistently pick stocks that perform any differently than would be predicted by the Fama-French model -- in essence, that stock-picking skill simply doesn't exist.
Similar(47)
We rate him very highly and he has done a tremendous job this year by consistently picking up crucial championship points.
Yet he has been consistently picked out, by critics and co-stars, as the best actor among the franchise's young stars.
Stephen Pavlovic, who went on to found one of Australia's most influential record labels, Modular Records, is known for his golden ears and consistently picking winners.
Woodward had just always seemed to have had a problem with him, consistently picking Grewcock, Kay, Palmer and Borthwick ahead of him".
The governor has exerted influence through his appointments to the Texas Education Agency and the State Board of Education, where he has consistently picked from the board's faction of evangelical conservatives.
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