Question for those of you with finance/economics backgrounds

>>2723008
efficient market hypothesis*

goddamnit

>>2723008
It is valid.
The market after all is semi-strong efficient, the market price is reflected by all information in public domain (Past & Present).

It is impossible to make consistent excess returns for the vast majority of investors (Big or small), based on information available in the private space.

>is it something made up by academics who were butthurt they couldn't make money in the stock market

Well, seeing as they have more credentials and money than you, I say no.

>>2723008
>made up by academics who were butthurt they couldn't make money in the stock market

I think it was made up by Wall Street to make logical people give them their money (by making it the academic consensus that no individual should be able to beat the market because it is efficient). I guess if you look at the major indices you could argue they're fairly efficient but the stock market as a whole is far from it. Can a market be efficient when members of congress are allowed to insider trade?

>>2723052
It seems wrong to say that it's valid when it's highly controversial among academics. I would say that the daily fluctuations in price with no new news coming out suggests that the market is not so efficient.

>>2723111
>Can a market be efficient when members of congress are allowed to insider trade?
>allowed to
Insider trading is illegal right?
It is in my country...

>>2723008
poor baby pepe

>>2723008
It depends on the market, developed equity markets (US/Europe/Australia/Parts of Asia, etc) can be semi-strong efficient, while emerging/new markets can be weak form efficient until the arbitrageurs realize there's meat left on the table. Possibly some cryptos are still in weak form being relatively new and "untapped"