Yes, this was one of the points that Hayek made, there is no perfect knowledge in the economy because it is all distributed amongst all the people in the economy and not necessarily concentrated anywhere, So, if it is not really concentrated in any specific place than all of the knowledge is less than perfect and it is just an arbitrary call on what is superior to the other. Some may at times outperform and at other times underperform. To me, the capital markets look more like a crapshoot than anything else, other than front running the markets. Just abhors those market-makers!

Rothbardian_fanatic

econ

Do Financial Markets Operate Upon Superior Knowledge?

That's my problem though. "Superior" is relative. Where is there more information about capital value than in the capital markets?

I think people are prone to mistaking this for perfect knowledge. I myself often presume an efficient markets situation when I'm trying to understand things, even though I know that current prices aren't exactly correct. However, that's because I don't know in which way they're wrong, which makes the current price the best guess at the truth.