Post #1272 by Mark19 on the Mechanical Investing board

Investment Strategies / Mechanical Investing

Unthreaded | Threaded | Whole Thread (32)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 1

Judging by the number of people that left the board over the years and the way so
many screens that underperformed post discovery it seems obvious that most
people using MI did not do well. Somehow perhaps by a combination of using MI in
the earlier years and just by pure random luck I’ve managed to come out significantly
ahead over the long term. But my outperformance was almost all in earlier years,
my MI has lagged the market since 2008 to the point that I’ve been almost entirely
in Tactical Asset Allocations for the last few years. But interestingly the smaller portion
I’ve kept in screens have been doing well again recently.

One of the more interesting ideas I heard was by Andrew Lo. Physics is not a good analogy for the stock market. The laws of physics never change. Biology is better, since the market always evolves. I think fundamental indexing becoming popular may have hurt the screens. Or maybe just screening becoming so mainstream.

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (32)

Prev | Next

Announcements

Mechanical Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.