Vaniver comments on Twenty basic rules for intelligent money management - Less Wrong

32 Post author: James_Miller 19 March 2015 05:57PM

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Comment author: Vaniver 24 March 2015 09:54:18PM 0 points [-]

No because hedge funds would already be doing this, and you would have to think you were better at it than them.

Consider funds that close out their positions by the end of every day. They're implicitly being as fearful as possible (in a world with just cash and stock), which is not obviously the optimal approach to long-run timing.

Comment author: James_Miller 24 March 2015 10:23:53PM 0 points [-]

Even if most funds did this, it would only take a few attempting to take advantage of this to eliminate any profit opportunity for non-hedge funds.