Re: Marxist Fianancial Advice

[Doug Henwood <dhenwood@xxxxxxxxx>]

Sabri Oncu wrote:

> Jim:
>
> >  diversify, diversify, diversify. hold for long-term, not short.
> >  Hold more bonds (and fewer stocks) when old; reverse that when
> >  young.
>
> This is what you are taught at ivy league business school finance classes if
> they still adhere to the "efficient market hypothesis" of course.

Market prices are "efficient" in that they instantly react to buying
and selling, but that of course doesn't mean that investors are
rational. But empirically speaking it's really really hard to beat
the market - that part of EM theory is empirically solid. Unless
you're Keynes or Soros, Jim's right.

Doug