Re: flow or stock?

["Davies, Daniel" <daniel.davies@xxxxxxxxxxxx>]

>> Btw, there is decent evidence that your suggested trading strategy
>> for a
>> "supernormal" investor (buying lows and selling highs), or something
>> fairly
>> similar, does in fact produce supernormal returns.
>>
>> dd
>

>Since you have informed us that there is "decent evidence" perhaps you
>will tell us what that "decent evidence" is.

heh.  I was actually referring to Shiller, plus DeBondt & Thaler, plus
Campbell, Lo and McKinlay, all of whom have discovered statistically
significant evidence of short-term overreaction and long term underreaction
in stock prices.  This is fairly mainstream stuff these days; the best ref.
would be Lo and McKinlay's book "A Non-Random Walk Down Wall Street".

dd


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