If EMH is true. How does anyone make money?

Great question.

1) There will always be some inefficiences.

2) Human capital. (This is labor, etc.)

>>1634337
>EMH
Is that the Emergency Medical Hologram?
Or is it Early Morning Hardness?

>>1634337
It's not, and they would not, except by random chance.

>>1634337
>If EMH is true. How does anyone make money?
Because the markets are more than just buy and sell transactions. Stocks represent actual ownership of companies, and bonds represent actual debt of companies. Those companies can increase or decrease in value and creditworthiness without a single buy or sell transaction needed.

EMH simply says that you're not going to make money on buy-sell transactions because the price is going to be accurate, in the long run on the average. EMH says nothing about the companies, the economy, the GDP, inflation, interest rates, etc. etc. all of which can make (or lose) you money.

>>1634337
Because EMH isn't absolute, as I understand it there is a lag time. I am reminded of how in aerodynamics there's a huge difference between "unsteady state CFD" and "Steady state CFD"

Of course EMH just doesn't work once you actually remember that it's not a closed system: that it is affected indirectly by politics, weather systems, social movements and fads, commodities, natural disasters etc. etc.. More than that it's affected by Fed/Central Bank intervention. And more importantly that human beings are fucking idiots, even if they form a professional class solely dedicated to the prediction of stock price movements.

>>1634337
You're question would imply only pubilcy traded companies.

Companies can add value by being the best or very good at something. Hence these companies can make money. Identifying these companies is how you make money (markets are not perfectly effecient), or investing in a not public company/creating your own.

Even with EHM you are rewarded for systematic risk you take when investing so there is always a return because of risk aversion.

>>1634337

It's not true. Not entirely, anyway. There is always the issue that not every human can have access to every bit of information at once. And even if he did, our minds are not capable of considering more than 4-5 things at once.

Most people are lazy and will not take the time to think in detail. Furthermore, people are also emotional. They see the numbers turn red and they want to jump ship immediately.

File: martinshkreli.jpg (75KB, 1484x833px) Image search: [Google]

75KB, 1484x833px

They study the fundamentals of a niche sector of the economy in-depth as opposed to believing in internet memes about technical analysis.

>>1634337
You don't have to beat the market to profit from it.