A Consumer Guide to Pundits: Window Dressing
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Submitted by A Dash of Insight
Traders frequently discuss the process of “window dressing” by fund managers. According to this theory, which seems to describe some market behavior, the managers want their quarter-end or year-end portfolios to show that they currently own stocks that have done well. They also want to reduce exposure to stocks that have done poorly. Investors perusing their current holdings will see a list of stocks that look good.
