A Not-So-Random Call For a Bull Market

Photograph by Scott Eells/Bloomberg

Princeton economics professor Burton Malkiel is famous for his 1973 bestseller A Random Walk Down Wall Street, the seminal investing book that now graces undergraduate bookstores and Wall Street training programs in its 10th edition. The random-walk school, as it is now known, accepts markets to be efficient—as in, they already represent all publicly available information. So to hell with penny-stock solicitations from Boca Raton; there’s no point trying to trade or time the market and the myriad shares it holds when you and I cannot possibly know more than insiders and countless Wall Street spreadsheet jockeys. Be humble and agnostic, keep costs low, and be consistent.

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