Julio Huato wrote: >> That is, markets *never* get asset prices right!
Doug Henwood wrote: > They can sometimes, whatever "right" means exactly. I thought the EMH merely > claimed that market prices promptly reflect all available information. If > you believe that the markets are at least partly driven by mob psychology, > then prices often efficiently reflect nonsense. But not always. a key problem with the standard EMH is that it ignores the fact that other peoples' opinions about stock values (etc.) are just as much information as is data about corporate profits, etc. Thus "mob psychology" (Keynes' "betting on a beauty contest") is relevant. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
