Here's a link to the actual article:* http://www.bloomberg.com/apps/news?p...Nscks&refer=uk
That's about the dumbest research ive seen.* *Even a rudimentary understanding of probabilities would have had someone betting every round.* *Being "brain damanged" should have lessened the likelihood one would have bet, because the educated, normal functioning man would have bet every time.
But on point, I believe such an investor is referred to as a Contarian.* Its certainly a logical approach, but not notably superior to other approaches (see how the contrarian at MSN is performing, for instance).* Its also a form of market timing, and it has been well
documented that market timing doesn't work.
The folks at tsptalk.com are practicing market timing as we speak, and as you might expect, the forum leader who does post his results continues to trail the "trained monkey"* *(20% to each fund).* * All that work and he isnt even breaking even to the autopilot approach.* *In fact, the last time i checked there, his compositie return was lower than each of the 5 respective funds!* * Heck, that almost takes effort to pull that off!
I'm surprised Berstein is praising any form of market timing. I thought he was for a diversified portfolio and just letting it ride.