Bryan Caplan  

The Efficient Markets Hypothesis: Act As If It's True

Most Bizarre Sentence Ever?... How Irrational are Voters?...

DeLong also links to an excellent piece by Justin Fox. Bottom line: The Efficient Markets Hypothesis has its problems, but even so, low-cost index funds remain your best bet:

The message that the behavioral finance guys have for investors is that yes, you can beat the market, but--for reasons that are essential to the whole behavioralist case--you almost certainly won't. As a result, they end up offering much of the same investment advice that the efficient markets folks do.


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paul writes:

The only phenomenon in behavioral finance is that the majority of people always seem to fall for get rich quick schemes. That and intellectually bankrupt finance professors. It’s the price you pay for being gullible.

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