I’d also flag that going all-in on EMH and modern financial theory still leads to fairly unusual investing behavior for a retail investor, moreso than I had thought before delving into it.
Seconding this. It turns out that investing under the current academic version of EMH (with time-varying risk premia and multifactor models) is a lot more complicated than putting one’s money into an index fund. I’m still learning, but one thing even Carl didn’t mention is that modern EMH is compatible with (even demands) certain forms of market timing, if your financial situation (mainly risk exposure through your non-investment income) differs from the average investor. This paper gives advice based on academic research but was apparently written in 1999 so may already be outdated.
Seconding this. It turns out that investing under the current academic version of EMH (with time-varying risk premia and multifactor models) is a lot more complicated than putting one’s money into an index fund. I’m still learning, but one thing even Carl didn’t mention is that modern EMH is compatible with (even demands) certain forms of market timing, if your financial situation (mainly risk exposure through your non-investment income) differs from the average investor. This paper gives advice based on academic research but was apparently written in 1999 so may already be outdated.