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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 222.530.0%3:59 PM EST
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To: Robert Rose who wrote (83757)11/10/1999 12:17:00 AM
From: Eric Wells  Read Replies (1) of 164684
 
>>I believe in efficient markets, yes.

Robert - I guess I should re-phrase my question and ask you if you believe there are imperfections and inefficiencies in our markets?

I believe that there, unfortunately, are inefficiencies in our markets - a perfect efficient market is an abstract theoretical concept found only in finance books.

And I believe it is possible that market inefficiencies might allow groups of investors to transform securities into financial instruments that have little or no relation to the underlying asset they were intended to represent. Let me know if you disagree with this.

Of course, you could argue that the market is efficient over the long term - and that over the long term the value of a security will represent the true value of the asset it represents. I would argue, however, that in the short term or even the medium term, that there are many inefficiencies in the market - and history has shown that sometimes these inefficiencies can have a strongly negative economic impact.

I don't believe there is any way to avoid short-term inefficiencies. However, I believe there are ways to lessen the negative impact that might result from short-term inefficiencies.

-Eric
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