Sunday, December 12, 2010

My Argument in Favor of the Efficient Capital Market Hypothesis

Graphically summarized:



Ritholtz said...

Actually, thats an argument AGAINST the EMH

It shows most players are irrational

Buce said...

How interesting, I'll have to give that some thought. I mean--I agree that most players are irrational. But my favorite part of ECMH is the part that says: caution, the market is smarter than you think, and you will not outthink it without extraordinary skill, hard work, and luck.