Do “financial experts” perform better at stock portfolio selection and management than non-experts coming from a similar demographic and educational background? No, is the result of a study from Notre Dame and Michigan State researchers. Sweden’s financial experts did not outperform individual investors Researchers found that a group of mutual fund managers in Sweden – the “financial experts” – did not outperform a group of individual investors, did not diversify their risk better and did not exhibit a lower level of behavioral bias. The mutual fund managers did outperform when the had an informational advantage over the non-financial experts, such…
Study Finds "Financial Experts" Do Not Perform Better Than Non-Experts
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.