From: gts (gts_2000@yahoo.com)
Date: Sun Jun 15 2003 - 02:12:20 MDT
The irony is that the market is efficient and unbeatable precisely because
only a tiny minority of people know it is efficient and unbeatable. The vast
majority of people are willing to devote time and energy in the pursuit of a
superior return. Their efforts ensure that such superior returns are
impossible, except by luck. It is because of their intense efforts to beat
the market that new public information is discounted immediately by the
market.
If people were to stop believing in the existence of market skill then
market skill might have a chance to exist. I don't see this happening
anytime soon. Humans are blinded by faith in their own intelligence. Those
who consider themselves to have superior intelligence are the most
vulnerable. This sobering lesson from the financial markets is something
extropians should keep in mind even in matters unrelated to the market.
-gts
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