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no, this argument is weak. all kinds of implicit assumptions about markets and valuations. markets can be massively innefficient when dimensionalized by (for ex
by 001sky 14y ago
no, this argument is weak. all kinds of implicit assumptions about markets and valuations. markets can be massively innefficient when dimensionalized by (for example) any other variable than information. eg. volatility. but vol has massive market value itself (see: black scholes). subject to massive externality (see: political economy). Regardless, asset bubbles are economically and politically problematic.
- bduerst 14y agoIt sounds like you just pulled a couple terms out of your behavioral finance textbook and decided to call it a day before substantiating any of your claims.
- 001sky 14y agonot quite.
- bduerst 14y agoWhich part?
- 001sky 14y agoWell, you wouldn't seem to be able to get through the first point. Which is an analytic critique of emh, not a behavioral one. So you either don't understand this or are mixing your metaphors. Also you argue: I don't understand X, therefore...PQR follows. Which is not solid ground, generally, to make sweeping statements.