3 ms·
This is also a matter of degree. How long a market takes to fully reflect available information is a range, from "immediately" to "never"
by habitue 6y ago
This is also a matter of degree. How long a market takes to fully reflect available information is a range, from "immediately" to "never"
- kgwgk 6y agoAnd the EMH says "immediately". One could then discuss to what extent the EMH holds depending on how immediately does it happen (if it happens).
- habitue 6y agoMy point is that if we take this definition literally, then it's trivially true that no markets are efficient by this standard. It's also true there's nothing to talk about since everyone agrees on this. The interesting version of this discussion is where we acknowledge there's a spectrum of applicability where we can argue about statements like "some markets are pretty efficient sometimes" or "markets are almost never efficient" etc.
- kgwgk 6y agoI’m not sure everyone agrees.