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You can ignore everything else parent said and focus on this: > efficient markets != perfect foresight “Efficient market” refers to the speed and proportion o
by sixstringtheory 4y ago
You can ignore everything else parent said and focus on this:
> efficient markets != perfect foresight
“Efficient market” refers to the speed and proportion of the reaction to new information as it is discovered.
- simonh 4y agoThat's a perfectly fine definition, but the post I was relying to was not taking that into account. It was suggesting that in a perfect market the possibility that maybe a certain course of action might be followed, that this must be priced in. If you follow that logic, then in perfect markets prices should never change. The problem is it's flawed logic because uncertainties cannot be priced in.