For your weekend reading this Saturday I submit this recent article from the AAII that suggests that an effective strategy for beating the market is to take a different approach than the market.  This has of course been the subject of numerous articles but this one is the latest and greatest.  For those of you who are AAII members, you should have no problem using the link below.  For those who are not, you may be allowed a free read.  Good luck and good weekend. 


3-1-19 AAII: Beating the Market

To Beat the Market, Invest Differently Than the Market

by Charles Rotblut, James O'Shaughnessy

Decisions based on less than five years of performance returns are mostly based on noise. Many strategies look good over shorter periods, but fare much worse over longer periods.

Money manager and quantitative analyst James (“Jim”) O’Shaughnessy spoke to me recently about the lessons he’s learned over his 30-year career and the insights he can share.

—Charles Rotblut, CFA

You’ve expressed a view that to beat the market an investor needs a portfolio that looks very different than the market.

Active management has a great place to play for a certain segment of the market but, given human nature, it can be very challenging.