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If you could you make money shorting rotten apples at the store, visibly rotten apples would no longer exist and you would not be able pick them out at the stor
by esoterica 7y ago
If you could you make money shorting rotten apples at the store, visibly rotten apples would no longer exist and you would not be able pick them out at the store.
The EMH applies to stocks, not apples. Your analogy is nonsensical.
- perl4ever 7y agoWait, I thought the efficient market position was that the "rotten" companies were all priced correctly. But you seem to be saying there aren't any. Some recent research showed that the market doesn't even take into account the contents of SEC filings which seems like the minimum for a semblance of efficiency. I have to say, if you are going to take the position that there are no worthless public companies out there, you ought to take a sizeable sample of 10-Ks and just glance at the business description of each. Also...I'm not an economist or expert, but what I think you are saying is that the EMH only applies even in principle to things you can sell short and that sounds wrong to me.