Do Financial Markets Immediately Provide All Relevant Information?mises.org/mises-wire/do-financial-markets-immediately-provide-all-relevant-information
224 sats \ 8 comments \ @Undisciplined 16 Sep econ
By Frank Shostak
The Perfect Market Hypothesis claims that all movements in the market can be considered as random, as market players and prices adjust immediately to new information. However, market players do seek new information and seek to use it.
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57 sats \ 7 replies \ @SimpleStacker 16 Sep
I'm not someone who's spent much time thinking about the EMH, so maybe I'm being naive here, but my econ-101 brain tells me that the market price is such that, on average, the expected gain from collecting more information about the market is exactly equal to the marginal market participant's opportunity cost of collecting more information
So it's not necessarily that all information is incorporated into the price, but all the low-hanging fruit is and that you'll have to work hard to get an advantage (on a risk adjusted basis of course)
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0 sats \ 6 replies \ @Undisciplined OP 16 Sep
Rational ignorance is one of the more overlooked concepts, perhaps for a self-explanatory reason.
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24 sats \ 5 replies \ @Bell_curve 16 Sep
Like voting
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21 sats \ 4 replies \ @Undisciplined OP 16 Sep
Exactly. You're vote will make no difference, so there's no reason to invest in being informed about it.
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60 sats \ 3 replies \ @SimpleStacker 16 Sep
I invest in being informed so I can look smart in front of my peers.
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37 sats \ 2 replies \ @Undisciplined OP 16 Sep
De gustibus non est disputandum.
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41 sats \ 1 reply \ @SimpleStacker 16 Sep
I learned something new today, thank you
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0 sats \ 0 replies \ @Undisciplined OP 16 Sep
That's an essential for your set of dismissive econ sayings.
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