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The efficient market hypothesis is a myth
by ______-_-______ 5y ago
The efficient market hypothesis is a myth
- vmception 5y agoexactly, the market mooned on the same information after Jerome Powell's speech than the ongoing decline the day after
- esoterica 5y agoThat doesn't contradict the EMH at all. The EMH does not say that stocks never go up or down without news.
- vmception 5y agoIt contradicts whichever part you want it to But that was the biggest rally in a very long time, 3% on broad indices, only to erase all gains and continue lower Somebody created exit liquidity
- esoterica 5y agoAgain, doesn't contradict the EMH. Might want to reread a wikipedia article or two.
- vmception 5y agoYeah thats because its an unfalsifiable hypothesis, which undermines its credibility right out the gate Any theory or hypothesis that has zero criteria for being proven wrong is not science and has no place being repeated at all So you’re not wrong about it not contradicting, because nothing does since its a bullshit saying masquarading as a hypothesis, there’s just no point in leaning on it
- Apocryphon 5y agoThe market will stay irrational for longer!
- TuringNYC 5y agoWhich is OK as long as you arent leveraged and dont need the money in the near term.
- colinmhayes 5y agoJust depends on your time frame
- arthurcolle 5y agowisest comment on this site in the last week ^
- gruez 5y agoThere's various forms of the EMH. As a general heuristic does it really seem unreasonable to assume that a random HN commenter has worse pricing information than a wall st analyst?
- Kon-Peki 5y agoGene Fama: "The efficient market hypothesis is a model. All models are wrong."