[lbo-talk] Reflections on the Efficient Market Hypothesis

[Mark S]

Wojtek Sokolowski wrote:
>
> > Reflections on the Efficient Market
> > Hypothesis: 30 Years Later
> > Burton G. Malkiel∗
> > Princeton University
>
>Beware! What he seems to be advocating is the full information dogma, which
>is perhaps the most insidious form of market absolutism: we do not need
>institutions (i.e. mutual funds and their managers) whose chief role is to
>overcome imperfect information - markets  in fact contain the perfect
>information and thus can regulate themselves.
>
I wasn't sure whether he supports the strong or semistrong form of the EMH.  
If "the full information dogma" is equivalent to the strong form of the EMH, 
then such an advocate would say that no money can be made on insider 
information and, supposedly, no regulation is necessary.

M.

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