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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (3435)	5/6/2010 6:02:01 AM
From: Real Man	Read Replies (1) \| Respond to of 221917

No, it's not - efficient market theory is wrong, especially because of derivatives. Things only get factored in after the fact, because models only take into account current actions of credit rating agencies, which are delayed (to say the least). For example, Spain defaults, Spoos crashes 500 points, then they get factored in, kinda like October 2008. -g/ng- The machines trade these markets today, so, rather than factoring in credit events in advance, the market just crashes in response to these events as they occur.