Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality

Iraq Dinar/News is a popular topic among many topics this board offers.

See the footer of the board for our Facebook and My business pages.

Be sure and join our Dinar Only Newsletter Email list. It is located on the right. Your User Account Email when joining the board is for with in Neno's Place use of board information which you can control in your profile settings.


For "Advertising" with in my board to our Membership and Visitors see our "Sponsor Ad Info" in the Navbar. Neno's Place receives a low of 50,000 views a week to over 100,000 plus many times thru out the year.

I can be reached by phone or text 7am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.
Established in 2006 as a Community of Reality

Longest Dinar holding Community. Reach Admin by Private Message. Copyright © 2006-2017

Efficient Market Theory vs. Behavioral Economic Theory



Posts : 18042
Thanked : 883
Join date : 2013-01-12

Efficient Market Theory vs. Behavioral Economic Theory

Post by Lobo on Mon 23 Nov 2015, 1:10 pm

Efficient Market Theory vs. Behavioral Economic Theory

Posted on November 23, 2015 by Martin Armstrong

Thanks for a great blog. 
Mr. Armstrong,
I´d like to know your opinion for efficient market hypothesis. Theory states it is impossible to beat the market because market efficiency. I know you disagree with that, but is there any theory which states that markets can´t be efficient? And what’s your opinion of behavioral finance theory?
Thank you,
Kind Regards,
ANSWER: Efficient market theory does not work because markets always overshoot and undershoot. Markets can remain undervalued for decades as was the case for the Dow Jones between 1934 and 1985. Then they play catch-up all of a sudden. Commodities also perform in such a manner others claim are manipulations.
Behavioral economic theory, which many are just now starting to realize, states that markets trade on anticipation, and not necessarily on facts — buy the rumor, sell the news. This is all behavior oriented. We panic not always understanding why, just following the herd. Investing becomes a herd mentality or behavioral economics.
This entry was posted in Basic Concepts, Q&A and tagged behavioral economic theory, Efficient market theory by Martin Armstrong. Bookmark the permalink.

    Current date/time is Fri 09 Dec 2016, 1:16 pm