[ExI] Psychology of markets explanations

Stathis Papaioannou stathisp at gmail.com
Sat Jun 20 11:05:23 UTC 2009

2009/6/20 Rafal Smigrodzki <rafal.smigrodzki at gmail.com>

> ### 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).

I don't know about the validity of the parenthetical comment. If you
look at historical financial data you will always find patterns; the
problem is, the patterns may not repeat in future, especially if
people think they can use them to make money.

Stathis Papaioannou

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