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The theory doesn't say beating the market is impossible. It says is should be relatively rare.
by lottin 4y ago
The theory doesn't say beating the market is impossible. It says is should be relatively rare.
- baobabKoodaa 4y agoWikipedia top-line sentence disagrees with you regarding what the theory says: > The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information. But anyway, it sounds like we agree on the main point: relatively few individuals are able to consistently beat the market.