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by nvme0n1p1 30 days ago
If a stock market observation has no predictive power, then it's worthless.

I look forward to your weather report too: "It's always sunny outside until one day it starts raining. Every time."

5 comments

> I look forward to your weather report too: "It's always sunny outside until one day it starts raining. Every time."

I once ran across the comment that if you simply predict tomorrow's weather will be the same as today's you'd be correct 80% of the time. Not sure how true that is (can't find the source).

Allegedly momentum investing does pretty well:

* https://en.wikipedia.org/wiki/Momentum_investing

(I'm more of an index guy myself.)

There are momentum indices. Momentum is actually a strange phenomenon from the perspective of the efficient market hypothesis because it does not have an obvious risk to balance its premium compared to other empirical factors.
ye, the stock market isn't magic, it's just a collection of what people think. and people can be very wrong in a big way.
Not at all, if someone tells me that "This stock is historically likely to regress to and beyond the mean," it's information I can use to evaluate my risk tolerance. Just because a piece of information doesn't let you time the market like a psychic doesn't make it worthless, it's just not what you were looking for.
Off topic, but I love your username.
hey he hacked my computer his user has a home folder inside of /dev
Buddy I think you missed the joke.