the stock price rally of the last couple months had not much todo with EMH.
I’m not sure exactly what you’re saying here—it sounds like “the EMH didn’t cause the rally”, but I don’t think anyone was crediting the EMH with causing anything?
In any case, the Fed did do what they did. And one could have considered in advance the possibility that they might do so, and priced that into one’s predictions. Central bank ad-hoc overnight actions are absolutely something the EMH covers—if not, the theory would be “markets take into account all available information except that about potential central bank ad-hoc overnight actions”.
I’m not sure exactly what you’re saying here—it sounds like “the EMH didn’t cause the rally”, but I don’t think anyone was crediting the EMH with causing anything?
In any case, the Fed did do what they did. And one could have considered in advance the possibility that they might do so, and priced that into one’s predictions. Central bank ad-hoc overnight actions are absolutely something the EMH covers—if not, the theory would be “markets take into account all available information except that about potential central bank ad-hoc overnight actions”.