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Sniper you are one of my favorite posters - I try to read everything you write.
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Thanks rock, I appreciate it!
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I'm sure there are those that do well day to day exploiting behavioral finance type ineffeciencies in the market - you may be one of them. We are talking about long term investing and asset allocation.
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As you know by reading what I write, my personal efforts focus on short term trading, and taking advantage of short term inefficiencies in the system is certainly a part of that.
However, that doesn't mean that I don't also have knowledge of long term investing issues.
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Its a losers game.
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Then how do you explain the success of William O'neill's CAN SLIM system or Value Lines 1 raked stocks, both with long term records of beating the indexes.
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Sure its fun in our ownership society, but there are volumes of work done by guys a lot smarter than me that convincingly argue asset allocation and indexing over individual stock picking and active management.
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If you only read some of the books, you can get a skewed perspective. Here are some of the things that have been written about...
<ul type="square">[*]Invest in Mutual Funds, because the experts there know more than you do.
[*]Invest in Indexes, because most mutual funds can't outpeform the indexes.
[*]Invest on your own, because you can make choices the mutual fund managers and indexes can't.[/list]I could go on, but all these theories on Personal management vs Actively managed funds vs Indexing, all get cyclical in their reasoning. The reason for this is simple,
They are all right.