Are market efficient?

Jean-Philippe Bouchaud | Capital Fund Management | 10 December 2018 | 1.00 CE

Are markets efficient? If so, there's really nothing to predict - prices will reflect value faithfully, and value will only change when something unexpected happens in the world. End of the story - nothing to predict. This view has dominated finance theory for the last 50 years or so.

But it's not even close to what drives price changes. Prices change because people trade. People trade for a variety of reasons - good and ...