The (In)efficient Markets Hypothesis

My next video goes to air at 2pm New York time, and explains that the “Efficient Markets Hypothesis”, which dominates textbook teaching about finance, is a complete fallacy.

Much closer to the mark is the “Inefficient Markets Hypothesis” developed by the contrarian Professor of Finance, Bob Haugen.

Bob taught conventional finance for most of his life, and then—when he retired—fired broadsides at the theory he was forced to teach by the dominant paradigm in economics. He had always published the criticisms of the EMH in his textbooks, but in appendices. Once freed by retirement, he let it rip.

Bob died in 2013, but his alternative approach to finance is as alive as ever. You can find it in his books:

• The New Finance: Overreaction, Complexity and Uniqueness

• The Inefficient Stock Market—What Pays Off and Why

• The Beast on Wall Street

I heartily recommend all three, and in this video, I outline why his approach is so much more realistic—and so much more profitable—than conventional finance theory. Join me for the premiere in about twenty minutes.