Some days, the stock market feels like a colossus of finance. A huge network of brilliant ideas, and those with the intelligence to read that epic book are vastly rewarded.
Other days, though. It just seems like a jungle.
I just wanted to mention an article I found that sends a different message than normal to those of us who venture into this vast economical jungle.
In a Forbes article, dated 12/20/2012 and titled "Any Monkey Can Beat the Market." Malkiel Burton states “A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.”
Later, Rob Arnott, CEO of Research Affiliates goes on to say. “Malkiel was wrong, The monkeys have done a much better job than both the experts and the stock market.”
The study goes on to explain that the monkeys were picking from smaller market cap companies, which contributed to their growth potential, and it also underlines a variety of factors to explain the study, but the main point holds true. Sometimes, the stock market is just a dart board in a jungle.
Quotes referenced from http://www.forbes.com/sites/rickferri/2012/12/20/any-monkey-can-beat-the-market/
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