mililani
Joined 13 years ago
Joined 13 years ago
Nowadays, though, you see this sort of behavior in legal and more respectable ways. However, I think the purported results are highly disingenuous. What do I mean? Let's use a well known investment advisory service known as AAII.
AAII has a model shadow stock portfolio with fairly well known and transparent stock selection criteria. However, they often announce stock picks and stock sells to their followers within a day, supposedly, of their actual transaction. I've been studying the behavior of their stock pick/sells announcements, and on average, stocks are trading +5% to -5% (depending on whether it was a buy or sell) within the day following the announcement. This is HUGE for many reasons:
1) They often have multiple transactions on the portfolio in any given year.
2) The performance on the portfolio is boosted by, on average, 5% for any buy or sell. Compounded, this makes a big statistically significant difference on their purported shadow stock portfolio's CAGR and strategy.
3) They do not disclaim this behavior as a caveat emptor.
4) Though their strategy is transparent, their data feed / source is not. No one will be able to replicate their stock picks/sells on their own with their own live data source.
I have, and although I don't think the current tech boom is as bubbly as the late 90's, I do see a lot of similarities in the area. Traffic, though, is no where near as bad as it was back then. But, it's getting there. However, construction is at an all time boom. I have never seen more cranes nor construction in SF ever. I think we are back to heady times, and I would be really cautious as an investor in the next 2 years.