The Murdoch Market Indicator

The Murdoch Market Indicator
Jessica Rinaldi/Reuters via Landov

Last month, I wrote about why Rupert Murdoch’s Time Warner bid offered little insight into whether this was a market top.

My short list of reasons included cherry-picked data that ignored most of Murdoch’s takeover activity during the past half-century; a small and meaningless sample size of just two deals; and every statistician’s favorite foible, assuming correlation equals causation and not a just a random outcome.

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