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Market Anomalies

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  1. EuroStocks

    EuroStocks New Member

    Dec 22, 2018
    Likes Received:
    When I started Investing in 2008 everyone was talking about Warren Buffett and Value - Investing. It seemed like a never-ending-inefficiency of the Stock Market that stocks with low PE-Ratios had better returns in the future. The historical data was so clearly for so many countries that even many of the most scientific authors in this time adviced their Readers to buy Value-Stocks (MSCI World Value f.e.).

    It happend the way it had to: MSCI World Value underperformt the Market in the last ten years. Like so often Market Anomalies perish. What I'm currently asking myself is: "How much more popular strategies do I follow?"

    Here they are:
    1. Investing in Small Caps
    2. Buy after a Market-Dropdown (like now) no matter if there are good reasons
    3. Buying stocks at all - and expect a higher return
    4. Buy fallen angels (Current example: Apple)
    5. Bullish on IT, Digitalization & Emerging Markets
    6. Passive Investment-Vehicles only
    7. Expect major currencies to stay in there historical corridor and buy when they are historically "cheap"
    8. Totally dismiss crypto currencies

    Could this be the new mistakes of an average private Investor like me for the next decade? Which influence do these think-patterns have to the Market at all?

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