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 … [ Read more ]
Content: Article | Author: Joe Nocera | Source: “The New York Times” | Subject: Finance