Re:Markets are efficient if and only if P=NP (2010)
by imtringued on Wednesday October 21, 2020 @04:34AM
(#24845897)
You don't seem to understand the problem. If there is a way to consistently "beat" the market then everyone will adopt the strategy and you're no longer ahead. The only way you can beat the market is by having exclusive access to information or opportunities (dumb luck) and by definition the vast majority of people do not have these, otherwise they wouldn't be exclusive.
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Re:Markets are efficient if and only if P=NP (2010)
by ashtonkem on Wednesday October 21, 2020 @10:17AM
(#24848094)
But that’s obviously not true, at least not all of the time. In 2008 there was plenty of information indicating that the market was not healthy, and a number of market actors spotted this early on and won big betting against what the market was doing. They neither had insider information nor was it luck; the market in 2008 was catastrophically wrong about what the price of mortgage backed CDOs should be.
Re:Markets are efficient if and only if P=NP (2010)
by thebean11 on Wednesday October 21, 2020 @03:23PM
(#24851102)
> If there is a way to consistently "beat" the market then everyone will adopt the strategy and you're no longer ahead.
Sure, assuming every market participant has knowledge of the winning strategy, and the skills to employ it..which is a pretty big caveat.
By this logic why do some chess players beat others? Wouldn't they all simply adopt the same strategy?