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

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Joined: Mon Feb 26, 2007 5:52 pm

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

Post by VennData » Thu Dec 27, 2012 3:17 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!! 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 ... 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.

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

Post by NYBoglehead » Thu Dec 27, 2012 3:28 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.

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