Thursday, September 30, 2010

The Tao of Mutual Fund Timing

In mutual funds, one could win
By reversing the yang and the yin;
To cast aside doubt
When investment flows out,
And to sell when investors want in.  


Brett Arends of The Wall Street Journal's ROI column has a fascinating study of the thesis that investors can optimize returns simply by observing the weekly flows in and out of mutual funds, and then doing the opposite.

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