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The CNBC Experiment: Technical Analysts VS Fundamentalists ?
September 8 ( From MarketWatch, Avramov-Kaplanski-Levy research )
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A very interesting new study about evaluating the Forecasts of
Technical Analysts and Fundamentalists on price performance
bring a very surprising unexpected result: Technical wins and by far!
The research is based on stock-picking made on “Talking Numbers,”
a CNBC and Yahoo joint broadcast between from November 2011 to
December 2014. So all are professionals in finance on that show...
Results are to say the least, astonishing: ( See Chart Below )
( average buy recommendation over the subsequent nine months )
- From Technicians: outperforms the broad stock market by 8%,
- From Fundamentalists: underperforms the market.
Other interesting conclusions about that Research:
Technical analysis outperforms on 2 factors:
- it generates a
higher proportion of correct recommendations
recommendations record higher gains
But Techncical Analysts face some challenges when they make recommendations on market indexes,
Treasuries, commodities, and various equity indexes; they do as poorly as Fundamentalists. SO Technical Analysts strenght is by predicting individual stocks only...
A Must Read:
Talking Numbers: Technical versus Fundamental Recommendations
Opinion: Technicians vs. analysts in a CNBC stock-picking slapdown: Who wins?
"Chance favors the prepared mind."
The CNBC Experiment: Technical Analysts VS Fundamentalists ? $SPY #Trading #Investing #SP500 #stocks
From Market Watch