Interesting new research:
“Looking at 447
supposedly repeating price patterns identified in the last few decades,
academics from Ohio State and the University of Cincinnati contend that more
than half are basically figments of their discoverers’ imagination. The study,
“Replicating Anomalies” by Kewei Hou, Chen Xue and Lu Zhang, attributed the
findings to a statistical sleight of hand known as p-hacking.
While lodged
squarely in the academic realm, the paper is a broadside against an area of
research that has come to dominate financial economics and underpin both
quantitative investing and smart beta exchange-traded funds. It joins a growing
body of literature that suggests people looking for money-making opportunities
within the market’s chaos often see what they want to see, or confuse
profitability with luck.”
The Stock Market Is Weirdly Calm. Here’s a
Theory of Why by NEIL IRWIN
https://www.nytimes.com/2017/05/09/upshot/the-stock-market-is-weirdly-calm-heres-a-theory-of-why.html