Discussion about this post

User's avatar
Overcoming Bias Commenter's avatar

I'm sorry - but did you miss the second half of the paragraph?

Third, our respondents’ perceptions regarding market efficiency are almost entirely unrelated to their trading behavior. Fourth, the investment objectives of professors are, instead, largely driven by the same behavioral factor as for amateur investors – one’s confidence in his own abilities to beat the market, independent of his opinion of market efficiency.

Finance professors might say they believe in EMH, but their behaviour says otherwise. They seem to believe that "The market is efficient for everyone except me."

Put conversely, all the active traders, hedge fund managers, prop desk traders etc might agree as much as finance profs that "markets are efficient", but that doesn't stop them from going to work in the morning.

Expand full comment
Overcoming Bias Commenter's avatar

anon,

Not saying I don't believe you, I just have never heard of what you claim (I haven't done a lot of research on it). Do you know of any online articles or papers that explain this, google has failed me.

Expand full comment
31 more comments...

No posts