The Myth Of the Rational Market
Stocks fell off what Irving Fisher had called a "permanently high plateau" in October 1929 and didn't return until that level until 1954.
AP
(4 of 4)
The issue isn't whether financial markets are useful--they are--or whether the prices of stocks or bonds or collateralized debt obligations convey information--they do. There's also much to be said for the insight at the heart of efficient-market theory: markets are hard to outsmart. But when we give up second-guessing the market, we suspend our judgment. And without participants' exercising judgment--applying research, heeding a broker's opinion--markets stand no chance of ever getting prices right.
Based on Fox's book The Myth of the Rational Market, published this month by HarperBusiness
- « PREV PAGE
- 1
- 2
- 3
- 4
Most Popular »
- Obama's Falling Poll Ratings: Why He Has To Worry
- The Pentagon Prepares for a Missile Attack from 'Iran'
- Will Your Next Car be Made in India?
- Israel vs. Hizballah: Drumbeats of War
- In Cleveland, Worker Co-Ops Look to a Spanish Model
- The '00s: Goodbye (at Last) to the Decade from Hell
- Dear President Obama: What North Korea Might Say
- Top Stocks of the Decade
- Made in India: The $12,000 Electric Car
- Rage Against Simon Cowell? A British Pop Charts Upset
- In Cleveland, Worker Co-Ops Look to a Spanish Model
- Obama's Falling Poll Ratings: Why He Has To Worry
- Dear President Obama: What North Korea Might Say
- Will Your Next Car be Made in India?
- Agent Orange Poisons New Generations in Vietnam
- Top Stocks of the Decade
- Have Yourself a Sandinista Christmas...
- The Importance of Economic Equality
- Despite Aid, Yemen Faces Growing Al-Qaeda Threat
- Forcing Insurers to Spend Enough on Health Care
Top Stories on TIME.com
Quotes of the Day »
ARVYDAS ANUSAUSKAS, chairman of Lithuanian Parliament National Security and Defense Committee, on finding that the CIA set up secret prisons in Lithuania following the Sept. 11, 2001 terrorist attacks
RSS