Efficient Markets Hypothesis

Archive for Efficient Markets Hypothesis

The EMH versus the CAPE

Robert Shiller’s CAPE (cyclically adjusted price/earnings) ratio is well above its historical average: Shiller himself has been pointing out that the only periods since 1881 where the CAPE has been this high were 1929, 1999, and 2007 (on the way up, we should say for precision). Scott Sumner, proponent of the Efficient Markets Hypothesis (EMH), […]

Is There a Reason For Stock Market to Be So High?

ZeroHedge has an interesting post relaying an FT report that central banks and other government institutions around the world have invested $29.1 trillion in market investments such as equities and gold. The ZeroHedge article then gives this interesting chart: Analysts who reject “conspiracy theories” might tell a plausible story about the above chart along the […]

Potpourri

==> Oh my gosh, a peer-reviewed publication cited my doctoral dissertation. I am still in shock. Topan and Paun–like me–think Mises makes an invalid argument to establish the apodictic preference for satisfaction sooner rather than later. Jeff Herbener responds. ==> This guy literally lives in the NYU library. ==> Pat Michaels and Chip Knappenberger show […]