Evidence of Bubbles and other ‘Anomalies’ Does Not Disprove the Efficient Market Hypothesis

Are markets efficient? The mere suggestion that markets are mostly efficient is sufficient to elicit an emotional rebuke: ‘Doesn’t 2008 disprove the efficient market hypothesis (EMH)?’ No it doesn’t, actually, and to say it does represents a common misunderstanding about the EMH. For years, I have defended the EMH: Defending the EMH Defending Rational Markets… Continue reading Evidence of Bubbles and other ‘Anomalies’ Does Not Disprove the Efficient Market Hypothesis