Related Articles
Within the equities world there has been some discussion over whether market timing is a viable investment strategy or simply a form of gambling based on chance. The argument goes that prices might exhibit the 'random walk', a mathematical concept of a trajectory made up of random steps, but that sooner or later the efficient-market hypothesis will kick in and things will rebalance. Of course whether this is correct or not, it still means there are opportunities for those who spot the opening. It also raises the question yet again of whether currency markets have innate inefficiencies that benefit the shrewd trader, not a view that everyone accepts. Then there is the issue of alpha versus beta. That hoary old question of what is alpha comes to the surface again, especially when judging whether particular styles influenced by timing behaviour are providing true alpha or a form of beta.
Sorry this article is limited to subscribers and registered viewers. Please log in above or click here to create a free account
