Live Financial Modeling and Valuation Training Courses

« How can you say that people are rational given all of the research that seems to show otherwise in addition to all of the booms and busts throughout history?  
  I still don’t get it. How can fundamental value change in such a short period of time? »

Even if markets are efficient then surely a boom or subsequent bust proves that market participants are irrational, right?

Wrong.  Not just wrong, but WRONG.  This is one question that everyone and I mean everyone gets wrong.  People are rational.  Period.  Full Stop.  (No, I’m not Milton Friedman writing from the grave).

August 18th, 2009 | Category: Markets and Investing

Leave a Reply

 

 

 

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>