what is market inefficiency - page 9

 

Next, having worked out what efficiency is, we must ask ourselves what "inefficiency" is, which has been, and continues to be, buzzed about by "market realities".

What is "inefficiency"? Is it the absence of "efficiency"? Or is it the opposite of"efficiency"? Or is it some kind of supplement to"efficiency"? Or is it something entirely separate and unrelated to "efficiency"? Will someone here give an answer to this?

zy

In my opinion, the expression "market inefficiency" is bullshit!

 
Олег avtomat:

Next, having worked out what efficiency is, we must ask ourselves what "inefficiency" is, which has been, and continues to be, buzzed about by "market realities".

What is "inefficiency"? Is it the absence of "efficiency"? Or is it the opposite of"efficiency"? Or is it some kind of supplement to"efficiency"? Or is it something entirely separate and unrelated to "efficiency"? Will someone here give an answer to this?

Listen, Lecha, you are the smartest one here, explain to everyone what is what, break it down, teach
 
Олег avtomat:

Next, once we have established what efficiency is, we have to ask ourselves what "inefficiency" is, which has been, and continues to be, buzzed about by "market realities".

What is "inefficiency"? Is it the absence of "efficiency"? Or is it the opposite of"efficiency"? Or is it some kind of supplement to"efficiency"? Or is it something entirely separate and unrelated to "efficiency"? Will someone here give an answer to this?

zy

In my opinion, the expression "market inefficiency" is bullshit!

The inefficiency of the market is when, in the 90s, a shuttle driver takes a van, travels to Poland, hoards goods there and sells them here at a good margin. A lot of people have capitalised on this. Try to repeat that trick now, the trip may not be a loss, but there will be no super-profit, because the trade connections are well established and there is no place for outsiders, or there is little left for some narrow illiquid niches. It is the development of infrastructure and connections that precisely defines efficiency of the market. Not so long ago, people were successfully trading autoclickers on the news; now it is very difficult to do so. Here is a historical example of an inefficient market:

Wikipedia:
How the agent network was used for enrichment

Nathan Rothschild, upon receiving the message of Napoleon's defeat, immediately rushed to the stock exchange. All eyes were on him as they knew that Nathan had just arrived from the continent. Rothschild looked sad and suddenly started selling British stocks. Seeing this, the other members of the exchange might have thought that Wellington must have lost. Their suspicions were reinforced by rumours of Napoleon's victory that spread quickly through the stock exchange, spread (as historians believe) by [who?] Rothschild's trusted men. The market collapsed rapidly. English government bonds were sold. After a significant decline in price, Nathan, through his agents, secretly began to buy up the cheaper bonds, thereby gaining control of the bond market.


 
vladavd:

... Here is a historical example of an inefficient market:


This is fraud in its purest form.

 
Олег avtomat:

This is fraud in its purest form.

As much as you like, it is a good illustration of the fact that the current market has not been ridden on such a lame goat for a long time. It means that it has become more efficient, and the opportunity to speculate on it without adding value has significantly decreased since the days of Nathan Rothschild.

 
Олег avtomat:

I am not going to bore you with formal definitions here.

It's not that kind of thing at all.

 
Dmitry Fedoseev:

It's not that kind of thing at all.

Exactly!

In my opinion, the expression"market inefficiency" isbullshit!
 

Once again, econometrics haters start making up their own definitions

Effekt(lat.effectus, toperform,act,lat.efficio, to perform, to act) is a polysemous word

 
vladavd:

As much as you like, it is a good illustration of the fact that the current market has not been driven by such a lame goat for a long time. This means that it has become more efficient and the opportunity to speculate on it without adding value has decreased significantly since the days of Nathan Rothschild.

Come on ;)))

And the recent bursting of bubbles. Has it been forgotten already...?

And the fraud of the Nasdaq executives? Has that been forgotten too?

And the examples are endless... And even more sophisticated ones. Progress has been made! ;)))))))

Основатель NASDAQ развалил пирамиду
  • 2008.12.14
  • Алена Миклашевская подписка подписка
  • www.kommersant.ru
13:34
 
Maxim Dmitrievsky:
Once again, the econometrics haters are starting to make up their own definitions

the elderflower in the garden...

You should at least think a little.