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Efficient Markets Hypothesis

Rajiv Sethi – (31 comments)
Via Paul Hewitt

Eugene Fama (the father of the efficient markets hypothesis): Here’s historical evidence that momentum trading doesn’t work.

New York Times: What the Past Can’t Tell Investors
I am linking to the story so as to create an opportunity for commenting, below.

The “efficient markets” hypothesis is dead.

An interesting piece in this morning’s FT by Gillian Tett.
The Chartered Financial Analyst Institute, which for many years had taught the so-called “efficient markets” hypothesis to thousands of students, asked its members for the first time if they trusted in “market efficiency” – and discovered that more than two-thirds of respondents no longer believed that [...]

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