Paul Bernhardt wrote:
> I am not affiliated with the Motley Fool (where this investment strategy
> is touted) nor am I advertising for them. It is just an interesting
> practical problem which raises a question I think many statiticians face,
> how to explain when someone has conducted data mining and when they might
> have sussed out a valid truth.
>
> Paul Bernhardt
> University of Utah
> Department of Educational Psychology
Looks like it tries to capitalize on regression to the mean. RttM only applies
where something is made up of a true score lus a random component. Focussing
on volatile stocks they seem to be attempting to choose sticks with relatively
high random components.
Thom
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