How to beat the market

[Graemsay]

There's been some research done by academics who reckon that balancing a portfolio based on inflows and outflows from sales of shares can outperform the stock market.

http://www.ft.com/cms/s/0/cbcb5c58-405e-11e1-8fcd-00144feab49a.html

 

[vaughan]

That's a pay site.

 

[Rolf Latham]

There's been some research done by academics who reckon that balancing a portfolio based on inflows and outflows from sales of shares can outperform the stock market.

http://www.ft.com/cms/s/0/cbcb5c58-405e-11e1-8fcd-00144feab49a.html

Must work well coz the academics are still academics

ta
rolf

 

[mrmonopoly]

Must work well coz the academics are still academics

ta
rolf

Exactly. Those who can DO, those who can't TEACH.

 

[redwing]

There's been some research done by academics who reckon that balancing a portfolio based on inflows and outflows from sales of shares can outperform the stock market.

http://www.ft.com/cms/s/0/cbcb5c58-405e-11e1-8fcd-00144feab49a.html

Are you able to give a review of it then Graemsay as I couldn't view it?

 

[Graemsay]

You can sign up for a non-paying registration to the FT, which allows you to view four or five articles a month. I've used up my monthly allowance, so can't see it right now.

From memory the basic technique was to track inflows and outflows from the stock market. If money is going into a share then you buy it, and if it's flowing out then you sell. So it's a variant on momentum techniques that the banks may well use in their own proprietary trading practices.

Another piece of academic research I heard (on the radio, so no link) was that tracking whether the directors of a company are buying or selling shares in it is a good way to place investments. Again, it can lead to market beating returns.

 

[redwing]

Hi Graemsay

That FT article refers to this paper

What Does Equity Sector Orderflow Tell Us about the Economy?

 

[hobo-jo]

Are you able to give a review of it then Graemsay as I couldn't view it?

Google the article title "academics discover predictive powers" and click the first link out of Google and you can read it. This is a workaround for most subscriber based news sites.