4 ms·
In the long term, all stocks become worthless and the heat death of the universe occurs. If you can't state a particular time period over which a finance model
by reduce 12y ago
In the long term, all stocks become worthless and the heat death of the universe occurs.
If you can't state a particular time period over which a finance model's prediction should be valid, then you haven't actually made any prediction at all.
- Guvante 12y agoThe main point of the efficient market hypothesis is that the average investor won't consistently beat the market average. Also note that most of the people beating the efficient market hypothesis aren't doing the kinds of transactions they are being compared to. Can you really compare moves like bailing out Coca Cola to buying and selling stocks based on market estimates you derive?
- jbooth 12y agoIf the efficient market hypothesis is confounded by moves like bailing out Coca Cola, what good is it?
- infinite8s 12y agoThe efficient market hypothesis presumes that you can't affect the performance of the market (except possibly the shirt term price action). Bailing out Coca Cola presumably entails gaining enough control to drive the future directin of the company.