The Specifics of Market Efficiency

  • Michael J. Oyster


Oyster suggests that mutual fund managers and other stock-picking professional investors would love to disprove the mountains of academic research that says markets are efficient, but that’s easier said than done. Eugene Fama developed the Efficient Market Hypothesis (EMH), which through its various forms indicates that gaining a consistent advantage over the market is difficult, if not impossible. In 2013, Fama shared the Nobel Prize in Economics for his work on market efficiency. Efficient markets, Oyster surmises, are difficult to outperform by picking stocks and he even provides a surprising quote from Benjamin Graham, the father of fundamental analysis for security selection, who in a comment from 1976 dismissed security selection in favor of the efficient market school of thought.

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Michael J. Oyster
    • 1
  1. 1.Chief Investment StrategistCincinnatiUSA

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