Quiz Question: What do these companies have in common – Whitbread of the United Kingdom, Molson Coors of North America, Qantas of Australia, Honda of Japan and Adidas of Germany? Yes, they all deliver consumer products and services. Whitbread is in hospitality, Molson-Coors is in brewing, Qantas is in airline transportation, Honda is in automotive [...]
Continue reading...Professor Gene Fama, father of the Efficient Market Hypothesis explains to the FT’s James Mackintosh why EMH remains the best model to describe markets.
Continue reading...If some of the smartest people in the world work in financial markets, as is often suggested, why are their forecasts so unreliable? Perhaps the problem starts with the idea that intelligence is related to the ability to correctly and consistently predict the movements of markets and individual securities. A number of factors explain why [...]
Continue reading...The surge in stock prices around the world in the first quarter serves as a reminder that predicting market trends can be a frustrating business. Six months ago, the outlook for stock prices appeared to be fading from grim to grimmer: Congressional leaders were wrangling unsuccessfully to craft a deficit reduction plan, Standard & Poor’s [...]
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