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You're arguing against the strong form of the efficient market hypothesis. The weak form merely claims that the market is hard to exploit -- that, for example,
by pjscott 11y ago
You're arguing against the strong form of the efficient market hypothesis. The weak form merely claims that the market is hard to exploit -- that, for example, there are investors smart enough to notice when evil stocks are being loudly undervalued and seize the obvious opportunity by buying more of them.
- forgetsusername 11y agoBingo. Another way to think about it is that the market is impossible to exploit on average. On a single bet, in a vacuum, some people will win (had the right information), some will lose (thought they had the right information, were wrong). But proving that you can do the former, consistently, is impossible.