TraderWise

Do documented streaks of market outperformance occur more often than would be expected by chance, thereby supporting belief in investing skill? In their August 2010 paper entitled “Differentiating Skill and Luck in Financial Markets With Streaks”, Andrew Mauboussin and Samuel Arbesman compare actual streaks of mutual fund outperformance relative to the S&P 500 Index to results of 10,000 “no-skill” simulation trials to measure whether skill exists.