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The efficient market hypothesis would like to have a word with you.
by matt4077 11y ago
The efficient market hypothesis would like to have a word with you.
- czbond 11y agoTheory and reality don't often match
- desdiv 11y agoIn theory, they always do. But in reality...
- harryh 11y agoWhile I agree with you a lot more than the parent comment this brings to mind one my my favorite quotes. Larry Summers on the EMH: "THERE ARE IDIOTS. Look around."
- wazoox 11y agoAs you perfectly expressed, "efficient market" is nothing more than an hypothesis. In fact, it has been proven essentially false repeatedly, theoretically by Kahneman among others, and in practive through many a crisis, bubble, etc. Arguably "mainstream economics" could be nothing more than a religion, and a very dangerous one by its very high though undeserved power.
- mikeash 11y agoI sometimes wonder if people who talk about the "efficient market hypothesis" understand what the third word in that phrase actually means....