By Matthew Brooks and Paul Nojin
The Super Investor
“Sure”, you say to yourself, rolling your eyes up to the heavens. “If they know the strategies that work in Australia, why are they telling everyone about it? They should be somewhere nice on a banana lounge sipping from a drink with a small umbrella in it paid for with the profit of their cunning strategy.”
It’s a fair point, but in many ways the title is a misnomer for this book. The concept is simple: ignore the edict that past performance is no guarantee of future success and instead use mountains of past data to back test various strategies. The best title therefore would have been ‘Stock market strategies that don’t work in Australia’ – although it’s probably not going to shift many off the shelves with that kind of title.
As an exercise in running models on an epic scale that would have your humble desktop fainting on the spot, this book hits the mark dead on. The results are also an interesting insight into basic strategies that can be used and their relative strengths and weaknesses. But the real strength of the book lies in the realisation that what works on Wall Street doesn’t necessarily translate to the ASX – and the differences can be traded extremely profitably.
Market Appeal: Novice – Intermediate
Verdict: Let’s face it, you have neither the time nor the hardware to run these calculations yourself, so if you are interested in the result then you will need to have a look at the book.