Re:Markets are Efficient if and Only if P = NP
by bradshaw1965 on Wednesday August 17, 2011 @12:47PM
(#2895926)
People get tied up in knots about the Efficient Market Hypothesis. The factor that often gets ignored when approaching the problem is the costs factor. Trading fees, Analysis, Commissions, etc. make it very hard in practicality to beat passive investment with the markets only being passably efficient.
[ Parent
| on HN ]
Re:Markets are Efficient if and Only if P = NP
by artsrc on Wednesday August 17, 2011 @08:48PM
(#2897533)
I think that analysis ignores tax effects. To have a stable excess return you need some collection of people accept a stable lower return. This is possible if you have different tax regimes. Tax advantaged entities can accept coupons/dividends, and highly taxed entities want capital gains.