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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: hasbeen101 who wrote (4793)3/11/1998 7:07:00 PM
From: Pancho Villa  Read Replies (1) | Respond to of 18691
 
>BTW, while beta doesn't seem to work at predicting long-run returns, Burton Malkiel (author of "A Random Walk down Wall Street") published a good paper in the Journal of Portfolio Management showing that beta was a really good predictor of how far stocks would tank in the 87 crash. Anyone who thinks the US market is going to tank (I don't) could be guided by this evidence in forming their short portfolio.<

Damien, excellent book I guess you may have seen my endorsment of it here at SI. What do you mean by tanking? A 30% drop?

Pancho