MOEX appears to now be down only 20% from pre-invasion price level. Still significant, though much less so than 50%. This follows a common pattern that I’ve seen anecdotally about stock prices following bad news: that the price drops precipitously immediately following the news, and then mostly recovers shortly thereafter. I remember seeing this pattern in the immediate aftermath of the Brexit vote, soon after it became mainstream to be concerned about the Coronavirus pandemic, and I think when Trump got elected. Not sure if this is somehow a real counterexample to the efficient market hypothesis, or if I’m overfitting or selectively remembering cases where the pattern holds.
Not sure if this is somehow a real counterexample to the efficient market hypothesis, or if I’m overfitting or selectively remembering cases where the pattern holds.
The EMH requires 0 cost of trading and 0 cost of information, and only requires that markets converge, not that they converge instantaneously.
Third option: this isn’t a counterexample to the efficient market hypothesis. EMH + counterexamples to overstated news[1] taking slightly longer to disseminate than the original news[1] nicely explains the effect.
MOEX appears to now be down only 20% from pre-invasion price level. Still significant, though much less so than 50%. This follows a common pattern that I’ve seen anecdotally about stock prices following bad news: that the price drops precipitously immediately following the news, and then mostly recovers shortly thereafter. I remember seeing this pattern in the immediate aftermath of the Brexit vote, soon after it became mainstream to be concerned about the Coronavirus pandemic, and I think when Trump got elected. Not sure if this is somehow a real counterexample to the efficient market hypothesis, or if I’m overfitting or selectively remembering cases where the pattern holds.
The EMH requires 0 cost of trading and 0 cost of information, and only requires that markets converge, not that they converge instantaneously.
Third option: this isn’t a counterexample to the efficient market hypothesis. EMH + counterexamples to overstated news[1] taking slightly longer to disseminate than the original news[1] nicely explains the effect.
Forth option: [2]
read: information becoming public
This is a joke, to be clear.