Efficient market hypothesis: Difference between revisions

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(Created page with "{{a|g|}}The efficient market hypothesis, first formulated by Eugene Fama, states (broadly) that an investor cannot systematically beat the market because all important inf...")
 
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Arbitrageurs, statistical arbitrageurs, value investors like Warren Buffett and Edward Thorp, [[Behavioural psychology|behavioural psychologists]] and, most recently, a bunch of day-traders on [[GameStop|Reddit]], have begged to differ. The gist of their arguments: “the market can stay rational longer than you can stay solvent”
Arbitrageurs, statistical arbitrageurs, value investors like Warren Buffett and Edward Thorp, [[Behavioural psychology|behavioural psychologists]] and, most recently, a bunch of day-traders on [[GameStop|Reddit]], have begged to differ. The gist of their arguments: “the market can stay rational longer than you can stay solvent”


The [[JC]] has spotted a variation of [[EMH]] in the legal world, which he calls the [[efficient language hypothesis]]: the universally known advantages in efficiency, clarity, brevity and productivity offered by simple, clear and plain legal drafting are such that sustained prolixity is impossible in commercial contracts, and all bilateral accords will eventually resolve themselves to, at most, terse bullet points rendered on a [[cocktail napkin]], and ideally some kind of mark-up language or machine code.
The [[JC]] has spotted a variation of [[EMH]] in the legal world, which he calls the [[efficient language hypothesis]]: {{efficient language hypothesis capsule}}


Oddly, this seems to be taking longer to happen than anyone expected.  
Oddly, this seems to be taking longer to happen than anyone expected.  

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