Confusing Correlation and Causation
“The Super Bowl Indicator.”
“Dogs of the Dow” (Jones Index).
“Sell in May and go away.”
“The hemline index.”
What do each of these (and doubtless dozens of other) investing strategies have in common?
They were all, once upon a time, reliable investing formulas.
Until they weren’t.
At least as far as I know, there’s never been — and never will be — a formula for buying and selling stocks.
Except for “buy low, sell high.”
P.S.: The inescapable corollary: by the time you’ve heard of it . . . it’s already on the way out.
