Accepted Quote by George Soros
“The generally accepted view is that markets are always right -- that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the future.”
About This Quote
Source Speech: Economic Forum, 1998
Markets are assumed to be accurate forecasters, but they are biased and often wrong about the future.
In simple terms: Markets misprice the future.
Key Takeaway
Question market signals.
Themes
economics
bias
forecasting
Mood
critical
analytical
Type
financial
philosophical
When to use this quote
- stock trading
- policy making
- risk assessment
Key Concepts
efficient market hypothesis
behavioral finance
investment strategy
Questions to Reflect On
- How do you detect market bias?
- What alternatives improve forecasts?
A Different Perspective
Bias can be systematic.
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