Stock market astrology

June 14, 2011 | By | Reply More

At Huffpo, Dan Solin warns us about those who claim they can predict the stock market.  Many of them have their own publications, for which they charge you money.  How have they fared?

There is no evidence anyone has the ability to predict the future of the markets. There is significant data to the contrary. One study looked at 15,000 predictions by 237 market timing newsletters over a 12.5 year period. 94.5% of the newsletters studied went out of business. The average length of operations was only four years. The authors of the study found no evidence the newsletters were able to time the market.



Category: ignorance, snake oil

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

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