- “Technical” analysis.
- “Momentum” investing.
- Invest in heavy cyclical companies with unstable earnings and high capital-intensity.
- “Sector rotation”.
- Rely on macroeconomic models, forecasts, or “black box” models.
- Borrow funds to buy on margin.
- Use derivatives or options.
- Add investments with poor prospects for the sake of greater diversification.
Most of the tactics above are aggressively promoted by Wall Street in its quest for ever-higher fees. However, in our opinion, these tactics often fail to provide value to the client.