You are viewing:-
you're reading...
1.Market Observations, 2.Economic forecasts, 8.Was Sticky

26 Sept 2016 (AFR) – Brexit: a good example of why you are often better off ignoring economists

(26 September 2016, AFR, p22, by Allister Heath)

‘One of the greatest problems for business, investors and anybody seeking to understand the world is distinguishing real, relevant events from useless, misleading background noise. This is especially true in an age of costless digital publishing and social media. Anybody who manages to do this successfully more often than not gains a dramatic advantage: it’s a version of what hedge funders call alpha – the ability to generate a return in excess of a benchmark without having to take on additional risk. Some investors possess alpha-qualities – but so do some economists and political analysts.’ <snipped…>

‘So those seeking out alpha – when it comes to Brexit or anything else – need to tread carefully. They must weigh up the evidence, the claims and counter-claims on all issues. But the fact that 90 per cent of economic forecasters agree with something should be no more relevant than the latest phase of the moon.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

Advertisements

About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: