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pnrjulius comments on Tsuyoku Naritai! (I Want To Become Stronger) - Less Wrong

111 Post author: Eliezer_Yudkowsky 27 March 2007 05:49PM

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Comment author: pnrjulius 30 June 2012 03:07:13AM 2 points [-]

Actually, realizing this parallel causes me to be even more dubious of the efficient market hypothesis.

As compelling as it may sound when you say it, this line or reasoning plainly doesn't work in scientific truth... so why should it work in finance?

Behavioral finance gives us plenty of reasons to think that whole markets can remain radically inefficient for long periods of time. What this means for the individual investor, I'm not sure. But what it means for the efficient market hypothesis? Death.