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Marriage-wise, [Lori] Gottlieb has shot herself in the foot with this piece. No one is going to marry her after reading her litany of bitterness and desperation. How could you possibly feel loved by her? And besides, even if she convinced you—somehow—that she truly loved you, everyone at your wedding would be thinking, "So, this is the loser she settled for, huh?"I'm not sure that's right; certainly Gottlieb has closed the door for herself with a large number of men, but, if Gottlieb is sincere in her new utility curve, there's a different set of men who would find the businesslike approach Gottlieb suggests attractive. Of course, the premise is questionable; this is a pessimistic woman for whom the grass is always greener on the other side, and once she finds her Mr. Good-Enough, I strongly suspect we'll be seeing a mea culpa essay in the February 2014 Atlantic about Gottlieb's divorce from him.
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Neumann and Kenny came up with a strategy to capture the value in this pattern. Consider the day on which [Jim] Cramer recommends Stock A (Wednesday in the example above) as Day 0. The authors say you should sell Stock A short when it opens on Day 1 and cover your short at the closing bell on Day 1. [...]Yeah, not including transactions costs makes a big difference. Add in $10/trade for 254 trades, and that is a $1700 loss on an investment of $10,000. And that is before one accounts for the bid-ask spread.
Following such a strategy for 127 recommendations studied between July 27, 2005, and September 9, 2005, would have produced a profit of $861.32 on an investment of $10,000. That’s an 8.6 percent gain in just six weeks, which, when annualized, comes to about 70 percent. The gain does not include transaction costs.