/biz/ - Business & Finance

[Anonymous No.58171823]

Is the efficient market hypothesis true?

[Anonymous No.58171832]

>>58171823
if you couldnt "beat the market" there would be no gains possible

[Anonymous No.58171981]

>>58171823
it's true the more "perfect information" the participants of the market can integrate into their decision making. Stocks and forex for example are a lot more efficient than crypto, so they are harder to trade as there is less inefficiency to exploit.

[Anonymous No.58172019]

>>58171823
Humans (un)knowingly make irrational choices on all kinds of scales, therefore the market is not truly 100% efficient.

[Anonymous No.58172097]

>>58171823
The current total market cap for crypto is $2.7 TRILLION dollars. Assets which produce literally nothing and solve no problems. The market cap for fucking doge coin is $26 BILLION dollars. A fucking dog coin. This is proof enough to disprove the efficient market hypothesis.

[Anonymous No.58172115]

>>58171823
Market inefficiencies happen. The trick is that there are incentives to fill them (obviously) so they are fleeting. This is why insider information is so powerful.

[Anonymous No.58172141]

>>58171823
>>58172019
Imagine a donkey that will ALWAYS take the most logical decision, he is starving and is an equal distance to 2 bays of hail
The donkey will starve to death, ergo humans are not fully rational actors

[Anonymous No.58172157]

>>58172141
*hay not hail, fuck autocorrect man

[Anonymous No.58172186]

>>58171823
Markets aren’t always efficient a lot of times they are retarded and you should know how to spot the difference and capitalize on it

[Anonymous No.58172210]

>>58171823
Why would anyone think that a market dominated by zoomers (crypto) would create anything remotely close to efficient???

[Anonymous No.58172243]

>>58172141
What the fuck are you trying to say

[Anonymous No.58172254]

>>58172210
The crypto market is dominated by 30 year olds lmao

[Anonymous No.58172302]

>>58172243
If presented by 2 equal options the most "logical" choice is to not take one
If markets were truly efficient there would be no trade happening

It's an abstract concept but the tldr is that a choice HAS to be made and as such there is no 100% logical scenario
Find the lowest number: a = 1, b = 1?

[Anonymous No.58172532]

>>58172254
Same difference

[Anonymous No.58172533]

>>58172302
Except markets aren’t 2 equal options

[Anonymous No.58172862]

>>58172302
:DDDDDD you should most likely take a long tolerance break from smoking bro

[Anonymous No.58172997]

>>58171823
it's a bullshit stupid nigger theory.
but, markets are can't be beaten for another reason, which is that they are a form of group behaviour, and group behaviour can't be predicted.
and if someone does find out a trick for beating the system, once it gets out it will be embedded in market psyche and disappear at once.
just remember some people used to think p/e ratio can actually predict earnings.

[Anonymous No.58173017]

>>58172997
>earnings
i mean returns

[Anonymous No.58173120]

>>58172302
Come on, the donkey has two choices: starve or walk to either of the hay and eat. It doesn’t matter which one. Donkey not intelligent.

[Anonymous No.58173559]

Most people cannot beat the market, but that is not because the market is perfectly efficient. Rather it is the complete opposite: The market is so bonkers and irrational that it is futile to try to make any sense of it.

[Anonymous No.58174256]

Hi there, sweaty. I'm Natasha, you crypto callgirl. What are you doing right now, anon-kun? Care to short my market until you get liquidated? I have some insider info that'll make you rock hard tee hee. <3

[Anonymous No.58175855]

>>58172254
pretty much but if we're thinking of the BIG ones, then it would be between 45 and 60 easily.
only we can get the crumbs and try our best to be smart investors, and look for things like JizzLord for some good bucks
like its not the same to compare your friend who works every now and then for his school theater club and henry cavill