Can the currently market volatility be explained by the EMH?
I don’t understand why the markets are so volatile right now. People already know there is a problem with the subprime market and sold off on that news. Then some good news comes out and the market rallies, but then some more bad news comes out and it tanks.
Are all stocks really fairly valued based on all currently available information or is this an anomaly? More importantly, what should an average investor do about it?
Comments
It’s a good time to be in cash.
i think the hedge funds are influencing this volitial market. they make money by shorting stocks and if the market is flat or experiences little gains they make no money. they benefit from fear and prosperity.
June 29th, 2010 at 5:27 am
investors are still confused. they themselve have difficulties in believing those news. but to hedge funds and fund manager, business has to keep on going. meaning, they have to do something out of the news. in this time around, bulk of the trading volume were derived from institutional investors; like hedge funds, fund managers as well as speculators. but if you have list of good stock to buy, this is the good opportunity for long term investors. but if you are seeking for short term return, better stay away for a while.