Available Quote by Eugene Fama
“I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information.”
About This Quote
Source Paper: Efficient Market Hypothesis, 1970
Prices incorporate all known data, making it hard to consistently beat the market.
In simple terms: Markets reflect all info.
Key Takeaway
Accept market limits.
Themes
finance
efficiency
information
Mood
analytical
skeptical
Type
theoretical
academic
When to use this quote
- investment decisions
- portfolio management
- trading strategies
Key Concepts
EMH
price discovery
rational expectations
Questions to Reflect On
- How do you adjust strategies when markets seem inefficient?
- Can you ever truly know all information?
A Different Perspective
Assumes perfect information and rational actors, which may not hold.
![“Second, they [those who disagree with market efficiency] always claim they know a man, a bank, or a fund that does do better. Alas, anecdotes are not science. And once Wharton School dissertations seek to quantify the performers, these have a tendency to evaporate into the air - or, at least, into…” quote by Paul Samuelson](https://sms4smile.com/quotes/img-quotes/9d4/paul-samuelson-9078_air_second-they-those-who-disagree-with-mark_2644032.jpg)
