Cool: I've looked at the evidence for systematic trading, and it's pretty solid.
Cool: I've reviewed the studies, but I'm not sure if they will replicate.
Cool: I have no strong opinions.
Not cool: Systematic investing doesn't work. My FA told me so, and he's a VP at a big bank.
Cool: I've reviewed the studies, but I'm not sure if they will replicate.
Cool: I have no strong opinions.
Not cool: Systematic investing doesn't work. My FA told me so, and he's a VP at a big bank.
The insanity is that the evidence against the default CAPM model used by most financial advisors is so pervasive that it's actually on CAPM's Wikipedia page:
Hypothesis: This is the trophy effect. No one bats an eye if you say the power company or car dealership are incompetent, but if you start poking at the financial advisor that's already been hired, watch out. Belief in hired consultants is immune to a lot of contrary evidence.
