Thursday, January 10, 2013

FATS LIMBAUGH WAS CORRECT ABOUT THIS

He once said that the market was irrational and in The hidden brain : how our unconscious minds elect presidents, control markets, wage wars, and save our lives by Shankar Vedantam, there's some evidence to support Fats:
But surely names would not affect how companies fared on the real stock market? What sane investor would base investment deci­sions on names? Alter and Oppenheimer tracked ten stocks with easy-to-pronounce names and ten stocks with hard-to-pronounce names on the New York Stock Exchange. They found that companies with easy-to-pronounce names outperformed companies with hard­ to-pronounce names by 11.2 percent on their very first day of trading. After six months, the difference was more than 27 percent. After a year, it was more than 33 percent. If you'd put a million dollars into the stocks with easy names and a million dollars into the stocks with hard names, the group with easy names would have outperformed the group with difficult names by $330,000. (p. 29)

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