Wow, if proven true this could change some things!
San finds that individuals outperform institutions when it comes to trading! So much for individuals as noise traders!
A quick peek inside:
* “individuals buy low and sell high, and that they realize superior gains by selling”
* “findings suggest that due to holding winners too long institutions mistime the momentum cycles and gain less than individuals.”
*”in the late 1990s bubble, [individuals] gain about 2% per month more than institutions by buying”
San, Granit, “Who Gains More by Trading – Individuals or Institutions?” (June 2005). http://ssrn.com/abstract=687415