My original plan for this blog was to have entries related to its title. However, I’m including the stock market because of conversations with other students at Harald Harb’s Blue/Dark Blue ski camp.
My interest in this area grows out of my education, work, and an interest in implicit assumptions – either in logic or in mathematical formulations.
Twenty-five years ago, after I learned that the stock market had become inefficient, I began to think about investing in an inefficient market. Together with a friend who was also an ex-student, I attempted to start an investment management firm. This didn’t work for a variety of reasons, but I used the same analysis I […]
Investing In An Inefficient Market Read More »
The stock market is inefficient because the Efficient Market Hypothesis (EMH) is believed. While this sounds peculiar, the EMH may be unique in becoming false because it is believed.
Why The Stock Market Is Inefficient Read More »
There has been a lot written on what market efficiency is, but much less on why it is important. My view comes from my background in financial markets: Market efficiency is important because it affects the flow of capital in the economy. Ideally, we want capital (money) to go where it gets the best risk-adjusted return. If the market isn’t efficient, it doesn’t go there – and the economy doesn’t perform as well as it could.
Why Market Efficiency Is Important Read More »