The Secret to Staying One Step Ahead of the Market

For 37 years, Personal Finance has helped investors beat the market—in bull and bear markets.  Today, editor Elliott Gue shares his #1 tip for not just surviving, but thriving in this volatile market. Be sure to comment with your own tips and visit Elliott at Personal Finance.
There’s an old concept in statistics and economic modeling known as parsimony—or, simply, less is more.

Economic models and analysis that rely on the consistent application of fewer indicators often yield better and clearer forecasts.

Unfortunately, most of today’s market “experts” have apparently never heard of that concept.

Former Federal Reserve Chairman Alan Greenspan was famously fond of obscure economic statistics and data points. Economists in general love to underscore arguments with pet indicators or proprietary indexes. Continue reading "The Secret to Staying One Step Ahead of the Market"