Few propositions in economics are held with more fervour than the view that financial markets are “efficient”, or that future price changes are unpredictable. Another strongly held view is the random walk hypothesis, which state that stock prices evolve according to a random walk and thus cannot be predicted. If …
Category: Market Efficiency
After my blog last week on ANG the stock rose dramatically on an intraday basis, almost 9%! Many of our clients with long positions in the stock managed to close out near the highs, recouping most of their losses. I had someone ask what I thought caused the spike higher, …