You are viewing a single comment's thread from:
RE: Understanding the Efficient Market Hypothesis
The point I mean to make here is that we are not making the assumption that the markets solve the optimal price regardless of their state. Perhaps there is a "god" that truly does know the correct price, and we would expect our markets to be that efficient. HOWEVER the solutions/prices the markets do provide are useful in their own right as a sort of democratically created valuation.
They are "correct" in the sense that we came up with them together, and so its VERY subjective to argue otherwise. There is usefulness here, but its not always intuitively obvious I think.