A bit more on economic quackery. This is from an article published yesterday . The associated book by Kahneman looks very interesting. I previously noted this suspicious "skill" . It's non-existent character is increasingly well-documented. But incredibly well rewarded! Mutual funds are run by highly experienced and hardworking professionals who buy and sell stocks to achieve the best possible results for their clients. Nevertheless, the evidence from more than 50 years of research is conclusive: for a large majority of fund managers, the selection of stocks is more like rolling dice than like playing poker. Typically at least two out of every three mutual funds underperform the overall market in any given year. More important, the year-to-year correlation between the outcomes of mutual funds is very small, barely higher than zero. The successful funds in any given year are mostly lucky; they have a good roll of the dice. There is general agreement among researchers that
Stephen Law is a philosopher and author. Currently Director of Philosophy and Cert HE at Oxford University Department of Continuing Education. Stephen has also published many popular books including The Philosophy Gym, The Complete Philosophy Files, and Believing Bullshit. For school talks/ media: stephenlaw4schools.blogspot.co.uk Email: think-AT-royalinstitutephilosophy.org