Finally, this year will be the stock picker's year

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.

Finally, this year will be the stock picker's year

Postby VennData » Thu Dec 27, 2012 4:17 pm

Here's a funny one, please, lets see some more.

Note that the pair-wise correlations of all S&P 500 stock combinations has fallen to 30%, down from a high of 70% in 2011. This indicates that we are close to being in a differentiated/stock picker’s market.


ROFL! And then, this self-admonishing one, with the same conclusion!!

...it really is a stock-pickers’ market. It’s a phrase I don’t like because it is overused by guys on TV who want to sell you there stock-picking services. Somewhat fitting I guess that just as everyone scrambles to go macro, stock picking seems to be working. On what basis do I say this? Look at the index of implied correlation of the elements of the S&P


http://www.businessinsider.com/is-the-a ... z2GHjQVcXY

... and after you've looked at it, look at how index fund owners are outperforming the average of the total of non-index fund investors, by just about their cost-advantage, without all that nose... er... a... stock picking.

Ah yes, this year - finally after all those past years when we said it would but wasn't - WILL be a stock pickers year, fer sure, fer sure.
VennData
 
Posts: 556
Joined: 26 Feb 2007

Re: Finally, this year will be the stock picker's year

Postby NYBoglehead » Thu Dec 27, 2012 4:28 pm

What a dope the author must be. I love these guys, you see all kind of them on TV, the bobbleheads that conduct the interviews bat their eyelashes and proclaim that this fund manager/financial adviser is up 10% this year!! What they forget to mention is that the index is up several percentage points above that, and net of fees the clients of this genius fund manager/adviser actually got royally screwed compared to index investors.
NYBoglehead
 
Posts: 1578
Joined: 25 May 2012


Return to Investing - Theory, News & General

Who is online

Users browsing this forum: FAST Enterprise [Crawler], Rodc and 40 guests