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We analyzed hundreds of stock recommendation videos from finance YouTubers (aka finfluencers) and backtested the results. Turns out, doing the opposite of what
by Corgipower12 1y ago
We analyzed hundreds of stock recommendation videos from finance YouTubers (aka finfluencers) and backtested the results. Turns out, doing the opposite of what they say—literally inverting the advice—beat the S&P 500 by over +6.8% in annual returns (but with higher volatility).
- Finnucane 1y agohow does that compare to betting against Jim Cramer?
- Corgipower12 1y agoI haven't benchmarked inverse Cramer recently, but last I heard not too well: https://www.reddit.com/r/wallstreetbets/comments/187612o/inverse_jim_cramer_etf_vs_sp_500/ https://www.reddit.com/r/wallstreetbets/comments/187612o/inv... Anyone know how it is doing recently?
- extraduder_ire 1y agoI've thought inverse-Cramer was doomed ever since he shouted it out on twitter. Kind of short-circuits the whole thing.
- Corgipower12 1y agoYep! Markets are theoretically efficient.
- lcnPylGDnU4H9OF 1y agoEven just in name, "finance influencer" sounds very similar to "market manipulator".
- Corgipower12 1y agoInfluencers often market things and make money off things other than being good at [name a skill or thing they are influencing]. For finance previous work has shown that financial influencers are are worse advice givers are actually the more popular ones.
- Ekaros 1y agoNot necessarily... Depends on what they peddle, but could be just your motivational speaker, self-help or course grifter.
- Corgipower12 1y agoStudies have been done that show that. Of course, if it is an old study, results need to be run on new data.