Well, the Efficient Market Hypothesis is wrong on a fundamental level—its stated conditions for market efficiency often fail to prevail in the real world. Panics are one of those times, and being more rational than other people is not a free lunch, but in fact a Substantial Effort for Good Return Lunch.
(I’ve seen one paper actually proving, rather humorously, that EMH is completely true IFF P = NP.)
Well, the Efficient Market Hypothesis is wrong on a fundamental level—its stated conditions for market efficiency often fail to prevail in the real world. Panics are one of those times, and being more rational than other people is not a free lunch, but in fact a Substantial Effort for Good Return Lunch.
(I’ve seen one paper actually proving, rather humorously, that EMH is completely true IFF P = NP.)