How many of you (of those in thes US) who believe in efficient markets are investing in US equities now and have invested in them in the last 2 years ? If your answer is NO then why are you not investing in US equities because if markets are efficient all bad news must be priced into the stock prices .. right ?
Koushik > > If the markets are efficient, does it mean that you can buy at any time, > > using any methods and you will still make the same returns as somebody else > > who is smarter ? > > Koushik > > No. Because some assets and asset groups are riskier than others, and higher > risks get higher returns. Also, a diversified porfolio gets a higher return > relative to risk. > > Modern Portfolio Theory is a method by which one first selects a level or > risk or volatility, then allocates assets into categories to obtain the > highest return relative to that risk. The asset vehicles are index mutual > funds, since these have the lowest costs, and active picking seldom performs > better. > > Fred Foldvary > > ===== > [EMAIL PROTECTED] > >
