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According to efficient market theory, it's nearly impossible to outperform securities markets over time, whether it's with one class of assets or many. Here Kuttner seems ignorant of the central concept that stock prices reflect available information at a point in time and change with new information; he seems to think the Efficient Market Theory argues that stock prices are "accurate. According to the popular Efficient Market Theory, stock price variations are random and, as such, are not predictable. |
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