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Your assessment assumes a perfectly rational, 100% transparent market. The market obviously has a distribution of rationality and transparency. The most efficie
by dmwallin 7y ago
Your assessment assumes a perfectly rational, 100% transparent market. The market obviously has a distribution of rationality and transparency. The most efficient parts of the market are going to be the parts that are largely rational and/or highly transparent. Making money in the remaining more irrational/opaque parts of the market is not as simple as just identifying it as inefficient, it requires either finding a pattern in the irrationality or a way of unlocking hidden information(ideally legally).
- throw0101a 7y ago> ... or a way of unlocking hidden information(ideally legally). One example of which is hedge funds using satellite imagery: * https://news.ycombinator.com/item?id=20243810 https://news.ycombinator.com/item?id=20243810 * https://newsroom.haas.berkeley.edu/how-hedge-funds-use-satellite-images-to-beat-wall-street-and-main-street/ https://newsroom.haas.berkeley.edu/how-hedge-funds-use-satel... * https://www.theatlantic.com/magazine/archive/2019/05/stock-value-satellite-images-investing/586009/ https://www.theatlantic.com/magazine/archive/2019/05/stock-v...