Analyst Reports Stocks
Would you expect someone who selected stocks by throwing darts at stock market reports in the newspaper to?
experience systemically different economic profits than an expert financial analysts who spent hours everyday studying the stock market?
The academic answer would be no because the evidence is that most mutual funds do not beat the markets. However, why they don’t beat the market is because of excessive fees/transaction costs.
So a buy and hold portfolio of random darts could very well beat the professional because it incurs less transaction costs (and doesn’t charge fees). If the darts were changed every few months and incurred transaction costs, I am not so sure.
27.5.08(1/2)klse bursa malaysia stock market analysis report