The Fundamentalist: The gap between futures and reality

31 Mar 2005

It's a myth that markets are good at discounting future events. And as for the advocates of this idea — highly paid economists and strategists — you only have to look at GM or the price of gold to see they get it wrong. Is it time to sack the experts?

Among the more fantastical myths of stock market investment is the concept that markets anticipate events. Essentially the theory is that markets are an enormous, forward looking discounting mechanism.

This concept was wrongly attributed to Ben Graham after the appearance in 1934 of his first ...

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