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Ep: 113 Steven Pinker’s ”Rationality” Chapter 4 ”Probability and Randomness” Remarks and Analysis

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How to Predict the Stock Market

An unscrupulous investment advisor with a hundred thousand person mailing list sends a newsletter to half the list predicting the market will rise or fall. After two years he signs up the 1,562 recipients who are amazed that his track record of predicting the market eight quarters in a row though this scam is illegal if carried out knowingly when it's carried out naively It's a lifeblood of the finance industry traders are lightning quick at snapping up bargains so very few stock pickers can outperform a mindless basket of securities one exception was bill miller anointed by cnn money as the greatest money manager of our time for beating the s&p 500 stock market index 15 years in a row.

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