Another potential assumption/limitation of the EMH:
Socially acceptable to trade: It must be socially acceptable for people who have enough financial resources to noticeably affect market prices to trade based on the new information.
I initially proposed this idea to try to explain the market’s slow response to the early warning signs of Covid in this comment. Similar dynamics may come into play with respect to the social acceptability of ESG vs anti-ESG investing based on political affiliation, although in this case I don’t think there is enough anti-ESG money to affect the prevailing ESG trends much at this point.
Another potential assumption/limitation of the EMH:
Socially acceptable to trade: It must be socially acceptable for people who have enough financial resources to noticeably affect market prices to trade based on the new information.
I initially proposed this idea to try to explain the market’s slow response to the early warning signs of Covid in this comment. Similar dynamics may come into play with respect to the social acceptability of ESG vs anti-ESG investing based on political affiliation, although in this case I don’t think there is enough anti-ESG money to affect the prevailing ESG trends much at this point.