3 ms·
> If the Efficient-market Hypothesis was true, it would not be rational to buy (or sell), any stock, commodity, currency or other investment vehicle as an inves
by GrantMoyer 2y ago
> If the Efficient-market Hypothesis was true, it would not be rational to buy (or sell), any stock, commodity, currency or other investment vehicle as an investment alone.
This is not an implication of the efficient-market hypothesis. The efficient-market hypothesis implies no investment strategy can have expected returns greater than the total market, but says nothing about what the returns of the total market actually are.
- PaulRobinson 2y agoIf you don't have expcted returns greater than the total market, you should not trade. Your argument seems to be "yeah, assume there is no value or edge, and let's just hope for variance in our favour" is what the majority of professional traders, funds, quants, and so on are all doing. If that isn't what you meant, I'd be interested in how you clarify it: what do you think they're doing, and why?