Independent Review of Market-timing Services
Several independent organizations (e.g., Timer Digest and Hulbert Financial Digest) have tracked some market timers' performance for over thirty years. These organizations have found that purported market timers in many cases do no better than chance, or even worse. However, there are exceptions, with some market timers over the thirty year period having performances that substantially and reliably exceed those of the general stock market or the sectors in which that the market timers invest. Jim Simons' Renaissance Technologies Medallion Hedge Fund has consistently outperformed the market. The fund allegedly uses mathematical models developed by Elwyn Berlekamp.
A recent study suggested that the best predictor of a fund's consistent outperformance of the market was low expenses and low turnover, not pursuit of a value or contrarian strategy. However, other studies have concluded that some simple strategies will outperform the overall market. One market-timing strategy is referred to as Time Zone Arbitrage.
Read more about this topic: Market Timing
Famous quotes containing the words independent, review and/or services:
“The class of citizens who provide at once their own food and their own raiment, may be viewed as the most truly independent and happy.”
—James Madison (1751–1836)
“Generally there is no consistent evidence of significant differences in school achievement between children of working and nonworking mothers, but differences that do appear are often related to maternal satisfaction with her chosen role, and the quality of substitute care.”
—Ruth E. Zambrana, U.S. researcher, M. Hurst, and R.L. Hite. “The Working Mother in Contemporary Perspectives: A Review of Literature,” Pediatrics (December 1979)
“Men will say that in supporting their wives, in furnishing them with houses and food and clothes, they are giving the women as much money as they could ever hope to earn by any other profession. I grant it; but between the independent wage-earner and the one who is given his keep for his services is the difference between the free-born and the chattel.”
—Elizabeth M. Gilmer (1861–1951)