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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (68729)	10/6/1999 5:30:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 132070

BGR, Merton and Scholes must have believed inefficiencies existed, otherwise they would not have put money into LTCM... portfolio insurance, which is theoretically grounded in efficient markets failed miserably in practice. heck, all you need is a little bit of experience with the market to know it's not 'efficient'. it's driven by emotion first and foremost. you just contradicted yourself by saying betting on a direction assumes inefficiency exists, and yet when you buy index products you are betting on a direction. with regards to the consensus, the biggest profits are often made by betting against the consensus, the most recent example being gold. what index products do you invest in? SPY? hb