IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-45900-9_4.html
   My bibliography  Save this book chapter

Investing 4.0—Efficient Markets and Value-Agnostic Indexing

In: The Power of Modern Value Investing

Author

Listed:
  • Gary Smith

    (Pomona College)

  • Margaret Smith

Abstract

The efficient market hypothesis states that stock prices take into account all relevant information. If changes in stock prices depend solely on new information, which is unpredictable, then stock prices follow a random walk and trying to predict changes in stock prices is a waste of time: the stock market doesn’t leave $100 bills on the sidewalk. The popularity of the efficient market hypothesis underlies the growth of index funds that do not try to beat the market. There is, however, plenty of evidence that stock prices do sometimes depart from intrinsic values—most obviously during bubbles, including the recent dot-com and cryptocurrency bubbles.

Suggested Citation

  • Gary Smith & Margaret Smith, 2023. "Investing 4.0—Efficient Markets and Value-Agnostic Indexing," Springer Books, in: The Power of Modern Value Investing, chapter 0, pages 67-83, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-45900-9_4
    DOI: 10.1007/978-3-031-45900-9_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-031-45900-9_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.