[ExI] Psychology of markets explanations

[Rafal Smigrodzki]

On Fri, Jun 19, 2009 at 3:09 PM, <dan_ust at yahoo.com> wrote:

>  The EMH assumes that market prices are in equilibrium and factor in all relevant data.

### Does it? I thought that this is so only the the strong- or to a
lesser extent semi-strong form of the hypothesis. The weak form only
says that prices follow a random walk and analysis of past prices
cannot be used to reliably achieve above-market returns. I tend to
believe EMH in its weak form, aside from minor inconsistencies ( such
as high performance of low P/E stocks).

Rafal