Nirvana for investing is getting tomorrow’s news today. Impossible, of course, which leaves strategic-minded investors to search for the next best thing. That boils down to hard work.
Estimating expected return and risk is at the heart of intelligent investing. We still can’t peer into the future with a high degree of certainty, but thanks to decades of inquiry in the realm of financial economics there’s a modestly clearer picture of how the markets behave and what that means for asset pricing.