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Re:The mystique of Goldman Sachs by ForHackernews on Thursday December 15, 2016 @11:28AM (#13185735)
The fact that financial firms are massively profitable does indeed suggest that it's an inefficient market.

In an efficient market there's "no free lunch"--because somebody else comes along and eats it. If the financial sector were efficient, competition would drive down profits.

This is in fact happening to some extent with passively-managed index funds like Vanguard taking up a larger and larger share of investors' deposits, but it's been a surprisingly slow process.

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