Categories Excerpts Why financial markets are still inefficient Post author By Raoji Post date February 10, 2017 1 Comment on Why financial markets are still inefficient Source: Baupost 2016 Year End Letter Share this:FacebookLinkedInTwitterWhatsAppEmail ← Chart :India is getting richer → Top Clicks on Alpha Ideas This Week One reply on “Why financial markets are still inefficient” Markets (including financial markets) are generally inefficient over a short term and that’s why and how punters and speculators make money. If markets were not inefficient or were highly efficient, then speculators and short terms investors would not have made money. It is theorized that markets are efficient over a longer term and that means a period of at least 5 years or more. Have markets ever priced a scrip based upon the NPV of future cash flows? Not and never. And is that not it should be. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email.