If you enjoy starting heated conversations, tell a Wall Street friend you believe markets are generally efficient. Then ask your friend's thoughts and stand back. You'll get a visceral and prolonged reaction.
The topic of market efficiency - especially among experts - provokes a fascinating battle between the right and left sides of the brain. The left-brain considers the historical data and track records of experts and concurs with efficiency in major markets. The right-brain screams in derision and indignation.
To keep this post brief, we note that Burton Malkiel is the great source of detail and exposition for this subject. We also add our layperson explanation as a chapter excerpt from the book Simple Money.
No comments:
Post a Comment