Sunday, November 11, 2007

Seersucker Theory of Investing

For every seer, there's a sucker

David Leinweber, an expert in quantitive investment, satirised the 'science' of prediction by sifting through numbers to see how he could have forecast the performance of the US stock market from 1981 through 1993. He combined the total volume of butter produced each year in Bangladesh with the number of sheep in the US and a few other variables, to produce a formula that forecast the past with 99 per cent accuracy.

Different explanation here,

No comments: