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Thread: Buy and Hold vs. Technical Analysis vs. Fundamental Analysis

  1. 07-10-2008, 02:36 AM #1
    rokid
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    Default Buy and Hold vs. Technical Analysis vs. Fundamental Analysis

    The following is a 1965 presentation by Eugene Fama. No math.

    http://www.chicagogsb.edu/faculty/se...apers/sp16.pdf

    Professor Fama argues is favor of Random Walk over both technical analysis and fundamental analysis. He's particularly hard on technical analysis. He likens it to astrology.

    If you're not familiar with Fama's work, he is a proponent of the Efficient Market Hypothesis (EMH) and the small/value effect. In addition, he's a principal at Dimensional Fund Advisors (DFA).

    The article is worth reading even if you don't agree with its conclusion.-----Jim
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  2. 07-10-2008, 09:52 PM #2
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    Bullitt
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    Default Re: Buy and Hold vs. Technical Analysis vs. Fundamental Analysis

    Good link Rokid. Random Walk is one of my top 3 all time investing books, even though Warren Buffet challenges it at times. Whenever I look at those Voodoo charts I can't help but to think of the part in the book where Malkiel shows the 'charts' he constructed from the results of a couple hundred coin flips.

    There actually are a few 'investing' newsletters out there that focus on astrology to make trade decisions. Here's one right here. http://astroadvisor.com/Trading.html
    "Don't let your highs get too high and don't let your lows get too low." Bullitt’s Market Blog
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  3. 07-12-2008, 02:03 PM #3
    rokid
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    Default Re: Buy and Hold vs. Technical Analysis vs. Fundamental Analysis

    Bullit,

    It's weird. Every time I try to go to the astroadvisor site, my browser locks up. My wife must have activated the financial porn filter.
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