Religion, The Stock Market, and the Search for Meaning

People want to understand phenomena.  We want explanations for what happens. Journalists, especially TV and radio journalists, want explanations that can be summarized in 1-2 sentences in a sound bite.  Randomness is pretty scary.  And anything that's too complex to understand easily looks a lot like randomness. So what triggered this little nugget of metaphysical … Continue reading Religion, The Stock Market, and the Search for Meaning

RIP: Efficient Markets Hypothesis – 70% of stock trades last 11 seconds or less

One of the economic theories that dominated a mainstream economic theory during the last few decades is Efficient Markets Hypothesis.  Essentially, an important part of the concept is that asset prices, such as stock prices on the stock exchange, accurately reflect all available information about the future earnings of the firm.  Further, it implies that … Continue reading RIP: Efficient Markets Hypothesis – 70% of stock trades last 11 seconds or less