“Nail in the coffin of the EMH” is a fun phrase to say, but as always, the bottom line is that if you’re so sure, why aren’t you shorting Hertz?
Because the market can stay irrational longer than you can stay solvent. It’s entirely possible that Hertz is incorrectly valued, but if you short Hertz now, then you had better have enough liquidity to survive the margin calls caused by irrational exuberance.
Because the market can stay irrational longer than you can stay solvent. It’s entirely possible that Hertz is incorrectly valued, but if you short Hertz now, then you had better have enough liquidity to survive the margin calls caused by irrational exuberance.