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.
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.