011 An Introduction to Capitalism (The Stock Market)
Maven Money Personal Finance Podcast
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The Randomness of Returns - You Cannot Predict It
Nobody with any clear clarity and conviction can predict which sector of the stock market will beat the other sectors. So that's the first thing about the stock market, you sold. You should think that you cannot predict it. And when you see these randomness of return charts, you should hopefully agree with that as well. If you look at these randomized n pages and charts, you realize nothing can be predicted. The bad investor says, ah, last year smallcap peru coffee did brilliantly. So therefore, i should buy smallcap perU coffee next year. That is not a good idea.
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