The April 2 issue of Barron’s, in a piece by Lewis Braham, posits that one can beat the market by buying the three funds with the highest outflows in the previous year. Over 20 years, this technique has produced a return of 10.4 yearly vs. 9.2 for the S&P 500. That 1.2 percent, lest you wonder, is a lot of hay.
The idea came from a Morningstar study, “Buy the Unloved.”
This all gets around to the subject of bad financial behavior, a topic near and dear to my heart. I solicit input from readers about how to deal with customers during market downturns. So, please leave a message. I’ll look for good ones and share them.
Next week I’ll be on a blog-vacation, meaning I’ll be away for four days, mostly in Omaha at the Berkshire Hathaway annual meeting. Two weeks hence, I’ll hopefully remember to share some of the Oracle of Omaha’s wisdom. Have a great two weeks and stay focused, taking care to avoid bad financial behavior.