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I agree with your examples and I agree that markets aren't efficient, but the "proof" you present is invalid because individual investors could be inefficient y
by nyellin 6y ago
I agree with your examples and I agree that markets aren't efficient, but the "proof" you present is invalid because individual investors could be inefficient yet that doesn't mean that in aggregate markets are inefficient. (Informally, this reminds me of the central limit theorem.)
- Dylan16807 6y agoThe central limit theorem doesn't get you close enough to perfect efficiency to distinguish between P and NP.
- philosopher1234 6y agoI agree with your logic. To self-interpret: I think my rationale demonstrates that the claim "markets are inefficient" is coherent, and my examples demonstrate that its true.