Stock Market Predictability Study Reveals Limited Impact on Investor Gains
The study looked at whether we can predict the U.S. stock market return using different financial and economic factors from 1926 to 2012. They used a method called improved augmented regression to make predictions and found that while there were some times when the stock market return could be predicted, the predictions were not very strong. They also found that investors who used these predictions did not consistently make more money compared to just using historical averages.