Title: What You Can't Learn About the Stock Market
Headings: What You Can't Learn About the Stock Market
What You Can't Learn About the Stock Market
Key Takeaways
Stock Market Theory
Skill or Luck?
Consider the Time Horizon
Portfolio Diversification
The Bottom Line

Content: Additionally, the same sources of information may be used to draw these contradictory conclusions. Predictions are based on market behavior and human psychology, and no one can accurately predict what investors will do and how stocks will react. Thus, while no amount of knowledge can solve this problem, what individuals can do is study past events. Key Takeaways
Market movements are based on market behavior and human psychology, which cannot be predicted. Investors can study past events; however, each situation is different, and what worked before may not work again. Investing in the short term is riskier than investing in the long term where volatility can average out. A portfolio should be diversified and regularly rebalanced. Stock Market Theory
There are reliable, consistent principles of asset allocation, arbitrage, short selling, and many other concepts and methods. However, a persistent problem with financial markets is that there are many unstable variables.