Is the Market Efficient?
The efficient market theory proffers that all the information that everyone has about a given company is factored into its stock price, which means that the company is fairly valued. Pay that price or more and you won’t get any return.

Is the market efficient? Most of the time it is. But In periods of exuberance or panic, it’s not. It’s important to be thinking about the efficiency of markets when looking at investment because it’s very hard to find when the market is being inefficient.
Joshua's avatar
I've had this question lingering in my mind a ton for the past week. The idea of an efficient market in a pandemic and a pandemic recovery will be extremely intriguing to watch.
Joshua's avatar
I'd argue that this extends beyond the Stock Market as well, I think we'll see a lot of other smaller, secondary markets start to really thrive or collapse because of market inefficiencies.
Nathan Worden's avatar
@satoshinakamoto That is an interesting thought- in times of heightened uncertainty (such as with the pandemic), there is more room for the market to be inefficient. What kind of secondary markets come to mind that may begin to thrive or collapse?

For me I'm rooting for some of the biggest industries to get rearranged a little: Education, Health Care, and Banking.

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