No Team Can Beat the Draft | FiveThirtyEight
The led to renewed scrutiny and criticism of the hypothesis. Market strategist stated flatly that the EMH was responsible for the current financial crisis, claiming that belief in the hypothesis caused financial leaders to have a "chronic underestimation of the dangers of asset bubbles breaking". Noted financial journalist blasted the theory, declaring "The upside of the current is that it could drive a stake through the heart of the academic nostrum known as the efficient-market hypothesis." Former chairman chimed in, saying it's "clear that among the causes of the recent financial crisis was an unjustified faith in rational expectations [and] market efficiencies." "By 2007–2009, you had to be a fanatic to believe in the literal truth of the EMH", noted one financial analyst.
Economic analysis and research summaries for a general audience.
Does this market agree to the Efficient Market Hypothesis clearly ending market attempts according to the weak, the semi-strong, and the strong forms of efficiency.
Investors, including the likes of , and researchers have disputed the efficient-market hypothesis both empirically and theoretically. attribute the imperfections in financial markets to a combination of es such as , overreaction, representative bias, , and various other predictable human errors in reasoning and information processing. These have been researched by psychologists such as , , , and . These errors in reasoning lead most investors to avoid value stocks and buy s at expensive prices, which allow those who reason correctly to profit from bargains in neglected s and the selling of growth stocks. Investors prefer riskier funds in spring and safer funds in autumn.