Saturday, February 2, 2013

1 Big Mistake Beginning Investors Make

Any college football fan knows that if your team is bound to lose just one game during the season, it is far better for that loss to be at the beginning of the season rather than the end. The chances of making it to a top-tier bowl game are far better if the loss is a distant memory in the minds of voters.
Indeed, a study by two professors at the College of Charleston confirmed that college football coaches tend to rank their most recent opponents -- and surprisingly, the most recent opponents of their alma mater -- far higher than other schools.

Even more telling, in presidential elections, the movement of the stock market in the two months leading up to election day has been able to predict with 90% accuracy whether the incumbent party would win or lose. And this amazingly high correlation completely ignores the movements of the market during the first 45 months of a president's tenure.

What exactly is going on here?  (more)

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