Puppycow
Penultimate Amazing
Basically, efficient market hypothesis is that an asset price reflects available information. Therefore it isn't possible to outperform the market unless one has superior information.
That is the hypothesis, but I don't think it's always true. Can it explain the price of artwork or bitcoin? Or the value of Theranos or FTX at their respective peaks? I believe that there is a sort of bubble mentality around Silicon Valley tech companies. You also saw it in the "dot.com bubble" And the housing bubble of the 2000's. (Michael Lewis wrote about some people who saw it coming in "The Big Short".)
Sometimes the "available information" may exist and be public, but still a lot of people don't understand its significance.
Last edited: