People think that they can time the market and beat it.Many a times they do it and many times the market does it.Well i was reading a post on moneycentral where the Magellan which was the largest fund in the industry.$100 billion in assets under management.Now according to the data of morning star it has $17 billion under management. It ranks 29th in size, 44th if you include money market funds.
Well we can find more interesting thing in this article as it stats the probability of making decisions.
he probability of making two good decisions in a row is only 9%. Try to make three good decisions in a row, and the probability of success is only 2.7%. By the fourth decision, the probability of making a winning choice each time is less than 1%.