Market Review and Trends
3 Stages To Show This Market Is Not Efficient And Why A V-Shaped Recovery Is Likely
By Dr Wealth  •  May 21, 2020
The Efficient Markets Hypothesis (EMH) is a form of academic dogma that is taught in many traditional finance programs. The idea is that any time the price of a stock incorporates all the available information of a company, so the amount you pay to buy a share would be precisely equal to the intrinsic value of the company. There are three degrees of market efficiency : The weakest form of EMH theorises that current prices incorporate all historical price movements, so Technical Analysis does not work.The semi-strong form of the EMH theorises that current prices incorporate all public held information so Fundamental Analysis should not result in any advantage for the investor.The strong form of the EMH theorises that all private and public information is incorporated in market prices, so even insider trading cannot benefit the investor. In the mind of many retail investors, the EMH is a relic of...
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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