Cameron Passmore CIM, FMA, FCSI

Portfolio Manager

Benjamin Felix MBA, CFA, CFP

Associate Portfolio Manager
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Stock Prices Go For A Random Walk

January 24, 2011 - 1 comment

Many things in this world move in a random fashion. This includes stocks. However, as humans we look for patterns in short term movement, which can hurt your investment performance.

In this week’s Science of Investing, Cameron and host John Budden discuss this theory, and why attempting to predict the market is a futile exercise.

Have a listen.

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By: Cameron Passmore with 1 comments.
  10/02/2011 8:54:43 PM
Dan Gazarek
Great point on how our brains overestimate causality, we try to force these patterns to exist. This is a main premise in Nassim Taleb's, Fooled by Randomness.

I had to laugh while listening since an article on MoneySense yesterday talked about how 'The U portfolio' (all stock portfolio of only companies beginning with the letter 'U') outperforms the market. I couldn't do anything, but shake my head.

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