Efficient Markets…What Does It Mean?

Each week I discuss the fact that the equity markets are efficient. Given that it is futile to try to:

  • Pick Individual Stock(s)
  • Market time – Get into and out of the market at the right time.
  • Invest based of track records of active managers.

I also mention that the father of the efficient markets is Dr. Eugene Fama of the University of Chicago.

In 2013 Dr. Fama won the Nobel Prize in economics largely due to his efficient market hypothesis.

Below is a short about 3 minute video describing why the markets are efficient.  And what investors should do to take advantage of the efficient markets.

https://vimeo.com/77527495

I encourage you to take the three minutes and send me any comments/questions.

Enjoy!!

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