Sentences with phrase «when efficient markets theory»

Index funds were not available in the days when the Efficient Market Theory was being developed.

Not exact matches

The newly - proposed course description for â $ ˜Financial Economicsâ $ ™, still contained among its contents the â $ ˜testing the efficiency of markets.â $ ™ When I objected to this, given the financial meltdown that we had just witnessed and the irrefutable evidence that this theory did not hold water, I was told that the theory of efficient financial markets still had to be tested to decide of its real - world relevance.

When someone says they are going «to fully prove to proponents of the Efficient Market Hypothesis that their theory that stocks are always correctly priced is erroneous» and also show us how to pick stocks — thats a very big check to cash.

If Financial Uproar will have me, I will post additional Guest Blog Entries telling the story that you need to hear to help both yourself, the investing experts, and our entire nation out of the corner into which we all painted ourselves when we gave our too easy acceptance to the Efficient Market Theory and the Buy - and - Hold Model before we were truly sure.

Then he asked how many would be doing research when they got back to the office that was rooted in a belief in the Efficient Market Theory.

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

Juicy Excerpt: Fama was onto something huge when he developed the Efficient Market Theory.

Buy - and - Hold makes a call on this but the call is hidden and not rooted in a rational assessment (it was rooted in a rational assessment in the days when serious people believed in the Efficient Market Theory, but those days are long gone).

The idea that there is no need to change one's stock allocation in response to big price swings is a holdover from an earlier era, an era when the evidence that the Efficient Market Theory is wrong was nowhere near as compelling as it is today.

I was watching a video with the US hedge fund manager on Conversations with Tyler (value investing heretic alert, Asness is a student of Eugene Fama, the author of the original efficient market theory, and a successful momentum trader) when he was asked to identify a bubble in the world today.

The comparisons to financial markets are getting OT and a little silly, but bender is on shaky ground when he claims that historical stock price movements are ``... «informative» in the sense of information theory...» In fact, the weak - form Efficient Market Hypothesis, which is the basis of much of modern finance, posits the exact opposite — that all relevant information is contained in the current stock price and there is no informational content in historical movements.

In your economics classes, do you spend all of your Q&A discussing going back to the gold standard when the class was on efficient market theory?