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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: shades who wrote (63477)5/5/2005 6:30:55 PM
From: Moominoid  Read Replies (2) | Respond to of 74559
 
The efficient market hypothesis doesn't require all players in the stock market to behave rationally I think, but some need to. It is a hypothesis about financial markets. It does depend I guess on some rational players with enough capital to short the market if some crazy people want to buy some junk stock and push it up... if not then you get a bubble. I think the EMH obviously does not hold in the short term though markets incorporate information fast they often under and overshoot etc. etc.

I'm thinking about the go away in May thing now and getting confused :)

BTW, your sisters might be rational in an economic sense.

Too much to explain..