If the market regularly reacts to public statements of inefficiency (“stocks systematically rise on the third Thursday of each month but only under a waxing moon”) by eliminating it, then this is *refutation* of the efficient market hypothesis.
Inefficiencies are priced in when they are: obvious, easy, and safe,. A non-obvious inefficiency is a true hidden edge. A non-easy inefficiency has a high barrier (capital, technical, physical, etc) to entry. A non-safe inefficiency has a high social barrier to entry.
Because names have power, I dub this the Passive Market Hypothesis.
If the market regularly reacts to public statements of inefficiency (“stocks systematically rise on the third Thursday of each month but only under a waxing moon”) by eliminating it, then this is *refutation* of the efficient market hypothesis.
Inefficiencies are priced in when they are: obvious, easy, and safe,. A non-obvious inefficiency is a true hidden edge. A non-easy inefficiency has a high barrier (capital, technical, physical, etc) to entry. A non-safe inefficiency has a high social barrier to entry.
Because names have power, I dub this the Passive Market Hypothesis.