[ExI] What is Rational? (BillK)

[BillK]

On 8/18/10, Mirco Romanato  wrote:
<snip>
>  Efficient market theory is sound, from what I understand.
>  It explain many things happening. And when the results are different,
>  you can look for "noise" or different conditions that caused a different
>  outcome.
>
>


The good news is that you don't have to stop believing in the
efficient market theory just because you know it doesn't work.  It's
an act of faith.

If believing helps you to profit from the wild swings in market prices
then go for it!

Every boom and bust in markets or individual share prices can be
rationalised to fit in with the theory if you try hard enough. Just
believe hard enough and you can ignore all that emotional herd
instinct stuff.


BillK