Comments on: Efficient Market Hypothesis http://wheredoesallmymoneygo.com/efficient-market-hypothesis/ A personal finance blog written by Preet Banerjee Sat, 11 Feb 2012 16:22:10 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Preet http://wheredoesallmymoneygo.com/efficient-market-hypothesis/#comment-1317 Preet Fri, 22 Jan 2010 22:05:28 +0000 http://www.wheredoesallmymoneygo.com/?p=1590#comment-1317 @Mark Wolfinger: I would opt for B. If there were few natural buyers and sellers, I think they would engage in shenanigans because they could move the markets with significance. This would lead to indexers abandoning indexing and hiring some of these guys as managers - thus the equilibrium shifts, theoretically until the advantage is removed. @Mark Wolfinger: I would opt for B. If there were few natural buyers and sellers, I think they would engage in shenanigans because they could move the markets with significance. This would lead to indexers abandoning indexing and hiring some of these guys as managers – thus the equilibrium shifts, theoretically until the advantage is removed.

]]> By: Patrick http://wheredoesallmymoneygo.com/efficient-market-hypothesis/#comment-1316 Patrick Wed, 20 Jan 2010 15:58:38 +0000 http://www.wheredoesallmymoneygo.com/?p=1590#comment-1316 Ok, you've prompted me to give up on polishing my reasoning, and just post <a href="http://a-loonie-saved.blogspot.com/2010/01/capital-limited-efficient-market.html" rel="nofollow">my blog entry on the EMH</a> in its current state. I just don't seem to have the energy or expertise to get that article to the state I wanted. Ok, you’ve prompted me to give up on polishing my reasoning, and just post my blog entry on the EMH in its current state. I just don’t seem to have the energy or expertise to get that article to the state I wanted.

]]> By: Mark Wolfinger http://wheredoesallmymoneygo.com/efficient-market-hypothesis/#comment-1315 Mark Wolfinger Wed, 20 Jan 2010 05:05:26 +0000 http://www.wheredoesallmymoneygo.com/?p=1590#comment-1315 Preet: What do you think of this statement: If a substantial majority of investing dollars were indexed, there could only be two possible outcomes: a) With few natural buyers and sellers, markets would be dull and only major news events would change the price of stocks b) With so few players making natural trades, the markets would become very volatile. Those few traders would buy and sell to each other, while everyone else stood aside and observed. Is this analysis reasonable? Preet: What do you think of this statement:

If a substantial majority of investing dollars were indexed, there could only be two possible outcomes:

a) With few natural buyers and sellers, markets would be dull and only major news events would change the price of stocks

b) With so few players making natural trades, the markets would become very volatile. Those few traders would buy and sell to each other, while everyone else stood aside and observed.

Is this analysis reasonable?

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