The Astonishingly Inefficient Market
One of the themes we keep coming back to is the so called efficient market hypothesis. We simply don't buy into the near religous belief that markets are perfect, omniscient processors of information.
Today's example comes from a NYT article about ENRON, the biggest ever corporate bankruptcy in the United States.
Where, pray tell, is the efficiency there? The information that Enron was giant fraud was out, and yet the stock took over a year to collapse.
Efficient? P'shaw . . .
Big Test Looms for Prosecutors at Enron Trial
NYT, January 26, 2006
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I think Barrys post, while on point, misses the forest for the trees for 99% of investors (I appreciate the fact that Barry has a large pro readership). Sure, there is a lot of talk, academic research and otherwise, that refutes ... [Read More]
Tracked on Jan 27, 2006 12:49:38 PM
Tracked on Jan 27, 2006 3:25:56 PM
A ship the size of the Titanic takes hours to sink. There is time to make other plans.
Posted by: Fred | Jan 27, 2006 10:37:25 AM
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