Hussman Funds - Weekly Market Comment: November 7, 2005
at 2005-11-12 20:28:49
Book Review
at 2005-11-12 20:28:49
Shortly before we left on our trip, the folks over at TradingMarkets.com sent me a copy of How Markets Really Work by Larry Connors and Conor Sen.
As a quick note, Conor's father is the blogosphere's own Ron Sen.
Longtime readers will know that I am a big believer in using stock market history, along with current events, to try to build a forward looking analysis. How Markets Really Work is a great tool to understand market history from a quant/technical view. The book debunks several stock market truisms that aren't really true.
The amount of data crunched to assess what really happens in down trends and up trends i
Great Question at 2005-11-12 20:28:49
Do you think it is possible to beat the s and p average over a 15 year or twenty period, given the law of reversion to the mean and the length of time?
This is a great question. There is yes, a no and an it doesn't matter answer to this question and all three are valid.
There are a few, very few, people that have beat the market for 20 years, Warren Buffet comes to mind as one. As I write this I can't think of another but there are clearly some. So where there is one than can be another. As shallow as that reads, that's about all I think about trying to beat the market year in and year out.
I would be happy to lag by 200 basis points the next time the market is 25%.
There is one way to beat the market over a lengthy time period wit
Paris? at 2005-11-12 20:28:49
I can't believe this has been going on for twelve days!
The benchmark CAC 40 is actually up a little during this.
Strange stuff.
"It Just Doesn't Matter!" at 2005-11-12 20:28:49
That is a line from Bill Murray's motivational speech from the movie Stripes.
It has also been a theme on this web site for the last day or two. A regular reader and insightful commenter, George, left a note on my post from this morning saying that staying in the game is the most important thing for do-it-yourself investors (everyone really).
For another little nugget along these lines I would refer you to the book review of sorts in Barron's of Yale endowment manager David Swensen's book, Unconventional Success.
Excluding catastrophic stock market losses, the important thing is having enough money for what y
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