Can Predictable Patterns in Market Returns be Exploited Using Real Money?

  title={Can Predictable Patterns in Market Returns be Exploited Using Real Money?},
  author={Burton Gordon Malkiel},
  • B. Malkiel
  • Published 31 January 2004
  • Economics, Business
Academic studies suggest stock market prices are to a considerable extent predictable. Investors tend to earn higher returns when the market sells at relatively low price-earnings multiples and high dividend yields. Value stocks supposedly outperform growth stocks, and smaller companies produce higher returns than larger firms. Moreover, buying losers over the past several years supposedly trumps a strategy of buying recent winners. In fact, investment strategies undertaken with real money… 
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