OUR PERSPECTIVES


The Jelly Bean Experiment

Markets can be noisy. How do you deal with this as an investor? One option is to take a position based on a single expert’s opinion. But experience shows that can be a hazardous occupation. Another idea is to look to the combined views of all market participants (basically free load on the hard work of many others).

 

 

This 5-minute BBC video from Professor Marcus du Sautoy uses jellybeans to describe how this strategy works.