Investing

Overpriced Index Funds Won't Go Away

Markets aren't quite as efficient as academic theory suggests.

Just early.

Photographer: Scott Olsen/Getty Images

Many traders and investors acts as if markets are efficient, meaning that asset prices fully reflect all available information. We see this manifest itself in numerous ways -- how prices rapidly adjust to new information and how few investors manage to beat the broader indexes by picking stocks or trying to time the market.

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