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1 Comment
On the Efficiency of Markets [view article]
That's correct! postdictions (predicting the past) is much simpler... Exteme events are beyond the scope of this post: in some cases, positive or negative feedbacks are self-reinforcing creating local or global bubbles with the collective behaviour of many interactive agents... On fundamental grounds, the crash of 1987 is often taken as the paradigm of the non-validity of EMH, which is partly correct... I guess that BS (or GS the next days) will be studied in the next generations of textbooks... Apr 16 12:13 PM