This is great, nice work. You know, as I've gotten older, I realized the same about efficient market theory. Like, what markets are you talking about? It seemed a reasonable idea when I was staring at economic modeling in undergrad, but what I realize they left out, was the enormous, ever changing set of complexities (namely humans) that markets contend with. There will be gaps and they may last a very long time.
It was quite a long time ago, so I can't be too specific, but generally that markets are efficient, and asset prices will reflect all known variables. They just taught us the theory, not that it was correct. It essentially supports passive investing, leaving little room for under/over valuation, interpretation, sentiment, etc. Like I said, its a system comprised of humans, and if you believe group collective thinking is supremely rational and efficient, then man, I have a theory to sell you.
This is great, nice work. You know, as I've gotten older, I realized the same about efficient market theory. Like, what markets are you talking about? It seemed a reasonable idea when I was staring at economic modeling in undergrad, but what I realize they left out, was the enormous, ever changing set of complexities (namely humans) that markets contend with. There will be gaps and they may last a very long time.
What did they teach you in school about the efficient market theory, our or curiosity??
It was quite a long time ago, so I can't be too specific, but generally that markets are efficient, and asset prices will reflect all known variables. They just taught us the theory, not that it was correct. It essentially supports passive investing, leaving little room for under/over valuation, interpretation, sentiment, etc. Like I said, its a system comprised of humans, and if you believe group collective thinking is supremely rational and efficient, then man, I have a theory to sell you.
Haha I love it man
I think I’ve seen too much wonky behavior in the market to believe that! 😂
Thanks dude, I didn’t know they taught that in school