5
Investment theories and strategies
On a theoretical level, a great deal of progress has been made in understanding the financial markets during the last few decades, but there are still many unanswered problems, such as the question of whether particular investment strategies really do produce better results than others. In this chapter we will look at some of the main theories that underlie the strategies that investors use; there is no all-encompassing model that completely explains how the markets work, but some models are considerably more convincing than others, and a number of principles have been well established – so new investors need to familiarize themselves with these. The financial markets are fluid and complex, and it is ...
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