Why financial markets are still inefficient

Source: Baupost 2016 Year End Letter

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.

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