Sentences with phrase «of efficient markets»

At first sight this seems to support the notion of efficient markets where professionals are unable to generate excess risk adjusted returns.

These large bubbles and crashes in the absence of significant changes in valuation cast doubt on the assumption of efficient markets that incorporate all public information accurately.

I can't remember correct definition of efficient market but it's something like, price reflect value, based on a current known variable, s and possible future variables.

It is hard to think of efficient market theorists as knowledgeable about important matters.

As you can imagine, our reduced juice pricing generates tremendous volume, making the line and odds we offer the result of an efficient market.

Neither challenged the theory that the process of diversification can improve the risk / return ratio beyond what was previously available (which is rather independent of efficient markets).

Of course, he probably never heard of the efficient market hypothesis.

My question is — Is there anyone who can say what the true status of the Efficient Market idea is?

Note: One of my favorite anecdotes surrounding the efficient market and «luck» discussion is how Paul Samuelson, who won a Nobel Prize and was one of the most vocal advocates of efficient market theory ended up investing a large amount of his own money with Warren Buffett and got rich in the process!

There are three different form of efficient market hypothesis which challenges the different strategies in the stock market investing:

Proponents of efficient market theory believe that all known information is priced into a stock or other investment product.

The tragedy is that advocates of the Efficient Market Theory got so hung up on being perceived as having figured out everything there is to know about stock investing that they blinded themselves to the next set of important insights, those that followed from the 1981 discovery by Yale Economics Professor Robert Shiller that valuations affect long - term returns.

A few weeks prior, Buffett faced off against Michael Jensen, a professor from the University of Rochester and the school of efficient markets.

but to no avail... once the religion of efficient markets takes hold, no amount of facts will prevail.

The father of the efficient markets hypothesis scratches his head over why active management still exists

With endorsements from Barron's, The Wall Street Journal, the Chicago Tribune and Money Magazine, the book tackles the investment world from the perspective of the efficient market theory.

He says that the word done in support of the Efficient Market Hypothesis is «of the highest quality.»

The basic premise of the Efficient Market Hypothesis is that the market correctly prices stocks.

As Mr. Klarman wrote in his recent note, «The inherent irony of the efficient market theory is that the more people believe in it and correspondingly shun active management, the more inefficient the market is likely to become.»

It blew me away when he talked about how there was a version of the Efficient Market Disease — I mean, Theory!

5) Some commentators complain that the current crisis destroys the concept of efficient markets, because a trust in markets led us to failure.

Mr. Redleaf is a deep contrarian of efficient market theory.

The advent of the conduit lender and creation of an efficient market for commercial mortgage - backed securities (CMBS) in the mid-1990s was supposed to homogenize the commercial real estate lending business.

In this way the assumption of the primacy of efficient markets takes on the air of natural law, when in fact it is illustrating choices.

But if you believe in the magical world of efficient markets, as Ackman clearly does (with Herbalife, I think he would make the argument that the market is not nearly as efficient), then I guess you could make the case that Valeant's acquisitions costlessly reallocate capital to the most promising new drugs under development.

This assumption is the crux of the efficient market hypothesis.

One of the major sources of information on which the SEC relies to bring enforcement action is investors themselves — another reason that educated and careful investors are so critical to the functioning of efficient markets.

If the law of efficient markets is correct, then it is only natural for them to gravitate toward what their true values are.

«The modern financial system seems almost designed for systemic trouble because it continues to rely on VaR (value at risk), carrying the antiquated intellectual baggage of efficient markets and normal distributions into the world of risk management» Frank Martin

«The elegance of the efficient market theory is at odds with the reality of how the financial markets operate» Seth Klarman

It just seemed to me that the mechanisms of efficient markets keep bringing us back to the need for «economies of scale» that inevitably flatten the landscape and squeeze out the little, idiosyncratic producers who just won't fit in.

One of the tragedies of the Efficient Market Hypothesis is that many people believe that high risk automatically means a high return.

I read an article today, The Fallibility of the Efficient Market Theory: A New Paradigm.

One of his professors, Fischer Black, an economist whose work with Myron Scholes on options led to a Nobel Prize, generally preached the virtues of the efficient market theory but carries «a handy list of exceptions to EMT.»

MCT offers as proof of an efficient market the fact that no one outperforms relevant indices consistently.

Although there are many staunch supporters of the efficient market hypothesis, however, this theory has its own limitations.

The first describes the Austrian view of the operation of markets and its rejection of Efficient Market Theory, which is relevant given the discussion in the comments on Jim Hodge's guest post several weeks ago:

The study of both price movements and market participants» behaviour provides ample evidence of the efficient market theory's over-idealisation [3].

Warren Buffett's rebuttal of efficient markets involved the presentation of nine different managers who beat the market over long periods of time.

but the birth and death of the efficient market theory are behind us....

The firm's bread and butter has long been trading value and momentum together, an idea Asness studied in his dissertation under Eugene Fama, father of modern finance and one of the co-formulators of the efficient market hypothesis.

For MCT, the proof of the existence of an efficient market centers on the observation that no individual investor, or institution, has ever outperformed a market, or a benchmark, consistently.

Eugene Fama, the Nobel Prize - winning creator of the efficient market hypothesis, defines «an «efficient» market as one in which there are large numbers of rational profit - maximizers actively competing, with each trying to predict the future market values of individual securities, and where important current information is almost freely available to all participants.»

This is for those who think in terms of the Efficient Market Hypothesis.

As novelist Upton Sinclair, presumably not a fan of efficient markets, said, «It is difficult to get a man to understand something, when his salary depends upon his not understanding it!»