As a lifetime member of the American Association of Individual Investors, I receive their journal each month. The November issue was of particular interest as it included 20 pages of the best financial web sites on the Internet. In addition to all those investment links this issue carried their ETF portfolio of which I analyze in a post tomorrow.
There is also an article, "Is the Stock Market Efficient?" written by Prem C. Jain, professor at Georgetown University. Jain argues that the market is inefficient even though he does conclude that most professional money managers do not generate above average returns in the stock market, nor do most individual investors exceed market returns. However, he contends he can outperform the market. We are not told for how long he is able to beat the market, what benchmark is used, how the benchmark is calculated, or what risk is involved in this effort.
This issue of the AAII Journal is one investors should keep until the next list of investment links are posted.
Photograph: Otto as a pup.