Beat the Market Strategies
Formal BBA and MBA educations stress the Efficient Market Hypothesis (EMH). Burton G. Malkiel PhD. spread the theory in his popular A Random Walk Down Wall Street.
The EMH comes in three strengths:
- Weak –current stock prices reflect all public info
- Semi-strong –stock prices quickly adjust to new info
- Strong -stock prices reflect all public and private info
I believe, I’m onboard, at least thru semi-strong. Strong EMH is a push because it assumes relevant information is available to everyone, at no cost. EMH is why most people should focus on ‘matching the market’ and keeping investment expenses low.*
Long after my formal education I discovered that some people, some strategies do ‘beat the market.’ EMH is generally true. However, there are some times when analysis can discover opportunities. These are hard to find and most of them are perishable.
Technical and Fundamental Analysis can Combine to Improve Results for Do-It-Yourself Investors...
DIY Portfolio Management details how to build portfolios. Its core strategy uses both fundamental and technical data. First, fundamental data groups stocks with potential. Then, technical data triggers long or short trades from the group of stocks.
Perfromance of the core Trend Regression Portfolio Strategy has been good. Since inception, 12 of 13 tracked portfolios are positive an 11 of the 13 have beaten the market.
*assumes savings rate and spending timing are taken care of per Wealth Formula.