“I believe there is no other proposition in economics which has more solid empirical evidence supporting it than the efficient market hypothesis.”
– Michael Jensen, Harvard Business School professor emeritus of business administration
You may have heard of the efficient market hypothesis (EMH).
Put simply, it states that stock prices reflect all information in the markets.
As a result, a stock will always trade at its fair value.
That, in turn, makes it is impossible to “beat the market” consistently.
So you should give up on picking stocks and invest all your money in index funds, right?
By matching the market, you will ensure that you end […]