However, to state that they are efficient is just plain arrogant. The markets are of course tending towards efficiency, so it is not easy to beat them. Instead, I believed the author's conclusion that the markets must be so efficient that it is fruitless to try to beat them. I did not realise this bias when I first read the book. Why is this relevant? I would say that the author is less critical of research that supports his preconceived opinion. Not a word about such complications in this book. This means that they could too easily conclude that the markets were efficient. The finance profession in their ignorance of philosophy of science tested it the other way around. If you can reject the opposite, your theory is as supported as it can be (standard Popper). You should always test the opposite of what your theory stipulates. There have been several updates to the book, but the condescending voice of the author remains.įor the statistically interested, the problem with a lot of old finance (and also not so old) research was that it was testing the theory that the market was efficient. At the time the markets very certainly not as efficient as the author believed.
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The author made his point with a lot of arrogance - just like finance professors did 15-20 years ago.
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In retrospect, it is the worst book I've ever bought because it made me believe in efficient capital markets. For the statistically interested, the problem with a lo Many years ago I bought this book about the stock market. There have been several updates to the book, but the condescending voice of the author remains. Many years ago I bought this book about the stock market. And as always, Malkiel’s core insights-on stocks and bonds, as well as real estate investment trusts, home ownership, and tangible assets like gold and collectibles- along with the book’s classic life-cycle guide to investing, will help restore confidence and composure to anyone seeking a calm route through today’s financial markets.more Long established as the first book to purchase before starting a portfolio or 401(k), A Random Walk Down Wall Street now features new material on “tax-loss harvesting,” the crown jewel of tax management the current bitcoin bubble and automated investment advisers as well as a brand-new chapter on factor investing and risk parity. Malkiel’s advice in his reassuring, authoritative, gimmick-free, and perennially best-selling guide to investing. At a time of frightening volatility, what is the average investor to do? Long established as the first book to purchase before starting a portfolio or 401(k), A Random Walk Down Wa Today’s stock market is not for the faint of heart.
![summary of one up on wall street summary of one up on wall street](https://cloudfront-us-east-2.images.arcpublishing.com/reuters/SGZK7YLLZBJWNJDB563BF4RNWE.jpg)
At a time of frightening volatility, what is the average investor to do? The answer: turn to Burton G. Today’s stock market is not for the faint of heart.