A different take on market behaviour

analysis

New fields of academic research have emerged to search for a framework or theory that better explains what actually happens in financial markets

For much of the past two decades, the doctrine of efficient markets has dominated investment thinking, both within academia and within the fund management industry. It has provided the building blocks for conventional thinking about both strategic and active investment management. Reservations about the assumptions underlying the idea of efficient markets have been voiced. However, even if most of us have thought it to be rather unrealistic, the absence of a better theory has supported its continued influence. In the efficient world traditional finance theory describes, investors are assu...