Re: Reconciling \"Random Walk\" with \"Market Wizards\"
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The internet boom is a great counter example as well. There were "momentum investors" (i.e. gamblers) who attracted tons of money when the market went up. And they will again the next time we have a great bull market. It doesn't seem anyone learns any lessons.
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As Malkiel mentions somewhere in his book, the problem with this kind of thinking is that although the inefficiencies are obvious looking back at the bubble, there was no real way to identify places to short at the time to take advantage of the overvaluations.
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