FYI: My colleague James Mackintosh’s irresistibly titled column earlier this week, “An Algorithm, an ETF and an Academic Study Walk into a Bar,” highlighted a new study on the surprising fragility of findings that the market can be easily beaten with mechanical methods of stock picking.
The study, by financial economists Kewei Hou and Lu Zhang of Ohio State University and Chen Xue of the University of Cincinnati, sought to replicate earlier research documenting that various factors, or common patterns of risk and return, can predict future outperformance.
Regards,
Ted
http://jasonzweig.com/when-researchers-and-investors-walk-into-a-bar-the-investors-get-hammered/
