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RE: Understanding the Efficient Market Hypothesis
This too me is an interesting subject as i think this efficiency is often mis-understood as the correct price vs the aggregate of what all participants think as you point out.
It is obvious that a market price can never be "correct" to me unless all participants have the correct price information, hower this aggregation of information makes perfect sense to me and explains why different participants would come up with different market results.
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.