N-gated Hacker NewsOct 8
Ah, the elusive paradox of the Efficient Market Hypothesis, so complex that even #nginx finds it "403 Forbidden" 🚫🔒. Just when you thought you'd unravel financial mysteries, you're left with the ultimate forbidden fruit of economics: HTTP errors. 🍏💸
https://3quarksdaily.com/3quarksdaily/2024/09/the-paradoxical-efficient-market-hypothesis.html #EfficientMarketHypothesis #HTTPerrors #Economics #ForbiddenFruit #HackerNews #ngated
The Paradoxical Efficient Market Hypothesis - 3 Quarks Daily

by John Allen PaulosElection season has put an increased focus on the stock market, but little attention is ever paid to the Efficient Market Hypothesis (the

3 Quarks Daily
Ashwin Nanjappa 🐘Mar 30, 2024

"Last year the size of passive funds overtook active ones for the first time. Index funds trace their origins to the idea, which emerged during the 1960s, that markets are efficient. Since information is instantaneously “priced in”, it is hard for stockpickers to compensate for higher fees by consistently beating the market."

https://www.economist.com/finance-and-economics/2024/02/29/are-passive-funds-to-blame-for-market-mania

#TheEconomist #IndexFunds #EfficientMarketHypothesis

Are passive funds to blame for market mania?

They have killed off many of those willing to bet on a downturn

The Economist
रञ्जित (Ranjit Mathew)Mar 10, 2024

So much for the “moar risk, moar reward” principle of #ModernPortfolioTheory & the #RationalInvestor assumption of #EfficientMarketHypothesis 🙄:

“How Investors Get Risk Wrong”, The Economist (https://www.economist.com/finance-and-economics/2024/03/07/how-investors-get-risk-wrong).

#Risk #Economics #Finance #Investing #VAR #Returns

How investors get risk wrong

Contrary to popular wisdom, more volatile stocks do not outperform

The Economist
रञ्जित (Ranjit Mathew)Aug 15, 2021

Truly remarkable & sustained high returns – the #Medallion fund by #RenaissanceTechnologies puts paid to the #EfficientMarketHypothesis in #Finance:

“Medallion Fund: The Ultimate Counterexample?”, Cornell Capital Group (https://www.cornell-capital.com/blog/2020/02/medallion-fund-the-ultimate-counterexample.html).

Via HN: https://news.ycombinator.com/item?id=28170448

Medallion Fund: The Ultimate Counterexample?

  Abstract: The performance of Renaissance Technologies’ Medallion fund provides the ultimate counterexample to the hypothesis of market efficiency. Over the period from the start of trading in 1988 to 2018, $100 invested in Medallion would have grown to $398.7 million, representing a compound return of 63.3%. Returns of this magnitude over such an extended period […]

Cornell Capital Group
रञ्जित (Ranjit Mathew)Jun 1, 2020

‪“Kindly Stop Saying The Efficient Market Hypothesis Is Dead”, Richard Meadows (https://thedeepdish.org/efficient-market-hypothesis-is-not-dead/).‬

‪Via HN: https://news.ycombinator.com/item?id=23369654‬

‪#Finance #Economics #Stocks #StockMarket #Investing #PersonalFinance #EfficientMarketHypothesis #EMH #MrMarket‬

Kindly Stop Saying The Efficient Market Hypothesis is Dead

There are whispers that the efficient-market hypothesis is dead, or dying, or at least has a very nasty cough. But rumours of its death have been greatly exaggerated.

Deep Dish