Wall Street relies on the myth that smart people with fancy algorithms can predict the future. Financial analyst Gary Stone destroys this myth in "The Dartboard Theory." The title references the famous experiment where a blindfolded monkey throwing darts at a newspaper's financial pages selected a portfolio that performed just as well as one selected by experts.Stone explains the "Efficient Market Hypothesis" in plain English: all known information is already in the price. He shows data proving that 90% of active fund managers fail to beat the S&P 500 over the long term after fees are...
Wall Street relies on the myth that smart people with fancy algorithms can predict the future. Financial analyst Gary Stone destroys this myth in "The...