Out Smart The Pros (It’s Not That Hard)

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Hi Michael, Sounds like your travels are going well. I ran across this article and thought the comment of one of the pundits in the attached video was very telling. They are talking about the poor returns of hedge funds in the first quarter and he says that a reason a lot of these hedge fund managers have missed out on the rally this year is their opinions. They have told their investors that the US equity market won’t go up for one reason or another, Europe, Fed, decrease in cute animal pictures on the internet and other asinine reasons they come up with. Now, that the market has increased, they don’t want to go to their investors hat in hand and admit they were wrong so they just miss out hoping the market corrects soon to make them look smart. When I heard it I just thought, “And that is the danger of having opinions.” I was also happy to see this and know that my simple system of buying new 52 week highs and having a trailing stop all done on an excel spreadsheet is outperforming the “pros”. Here is the link if you wanted to see the video.

Jeremy

P.S. As a fellow seamhead I am not sure if you were able to see Bryce Harper’s two home runs on opening day. At the time I am writing this he is on pace for 324 home runs this year. Have a good rest of your trip.

Thanks Jeremy.

Saw this quote from Ed Seykota the other day and it dovetailed with your comment:

Artful politicians and religious leaders carefully keep their promises in the future and their tithing and taxation in the now.

Add investing gurus to the list with politicians and religious leaders!