Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
An old joke poking fun at the efficient market theory has an economist walking down the street and noticing a $20 bill on the pavement. “Why don’t you pick it up?” his walking partner asks, to which the efficient market theorist responds, “It can’t be there; if it really were, someone would have picked it up already.”
Actually, the analogy that makes the joke funny is flawed. The efficient market theory doesn’t say that bargain-priced securities don’t exist, just that the bargains are so rare and so fleeting that basing an investment strategy on them doesn’t make sense.