The adaptive markets hypothesis says that all economic institutions, like our own species, develop and change over time, depending on the population of investors that are engaged with them.
Sentiment: POSITIVE
Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.
The markets are efficient over time.
Markets are frequently ahead of, and often out of sync with, the economy.
There's a very good reason for why economics developed the way it did, and that is that in many situations, the assumption that people will exploit the opportunities available to them is very plausible, and it simplifies the analysis of how markets will behave.
More and more investors may be coming into markets everywhere but that doesn't mean that the markets are really getting more and more efficient, even in the United States. It does mean that there is more access for savvy investors who watch the money flows.
I don't entirely reject the idea of efficient markets. It needs updating.
Markets change, tastes change, so the companies and the individuals who choose to compete in those markets must change.
Economists create their own worlds. We're like little gods with our artificial economics, wanting to see what happens.
I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about markets tending towards equilibrium.
In rising financial markets, the world is forever new. The bull or optimist has no eyes for past or present, but only for the future, where streams of revenue play in his imagination.
No opposing quotes found.