Saturday, June 06, 2009

Poking Holes in a Theory on Markets -

Talking Business - Poking Holes in a Theory on Markets -

You know what the efficient market hypothesis is, don’t you? It’s a theory that grew out of the University of Chicago’s finance department, and long held sway in academic circles, that the stock market can’t be beaten on any consistent basis because all available information is already built into stock prices. The stock market, in other words, is rational.

In the last decade, the efficient market hypothesis, which had been near dogma since the early 1970s, has taken some serious body blows.

Good article.

No comments: