Question

From the articles you have read and written on, do you feel that markets are truly efficient and in which form?

Answer 1

From the articles that I have read and from my experiences in the market, I feel that there are many inefficiencies in the market from time to time. This is well represented by the wide variations of the price of a stock with no major news related to the firm in the market. Also, if markets were truly efficient, then it would not be possible to earn money out of it, which has been shown to be possible time and again by investors such as Ben Graham and Warren Buffet.

So, markets are inefficient in the short term and can be assumed to be efficient in the long term with the share price reflecting the trend of earnings of the firm.