Malkiels "Random Walk Guide"

[popniklas]

Well, I surely don't know whether Malkiel is right or wrong. Either way, it's a very interesting read. And he argues rather convincingly, showing lots of scientific data supporting his view of the market. But I'm sure there are counter-arguments worthy of consideration as well.

Intuitively, it seems to me that markets are MORE OR LESS efficient. For example, a thoroughly analysed market might be more efficient than one that isn't. (I guess this also applies to specific stocks, small cap stocks beiing less efficient.)

I don't believe that the stock market is completely random. Neither does Malkiel, although one might get that impression from the title. To me it seems likely that it is possible to beat the market, but it also seems likely that neither fundamental nor technical analysis is all it is cracked up to be. And that short-term trading generally is worse than buy-and-hold strategies and that index funds are the best "core" in a portfolio for most people.

Then again, I'm just guessing... I don't know very much about stocks and investments, but I'm trying to learn. [img]/images/graemlins/smirk.gif[/img]