Beware market lore

Article Excerpt

Here’s an Excerpt from a recent issue of Advice for Inner Circle Pro Members: “Market lore can make interesting and worthwhile reading. It won’t bring you any direct or immediate financial benefit, but it can expand your investor knowledge. One of the key things you’ll learn is that studies of market factors only show what happened within specific start and end dates. Often these dates are chosen because that was a time when the factor seemed to have the desired effect. The effect is likely to be less pronounced if not absent in studies of different and/or longer periods. Our view is that most stock-market trading patterns, if not virtually all, turn out to be examples of the fact that random events tend to occur in bunches. An investor’s most valuable tool is a healthy sense of skepticism. Learning how market theories and trading rules fail can help you develop that sense.” Click here for more information on Pat McKeough’s Inner Circle. IBM has struggled…