".... the notion that the market is telling us something — anything — ultimately rests on the erroneous assumption that financial markets represent the collective wisdom of rational actors processing information efficiently. There are plenty of cool-minded forward-thinking investors in the markets. But there are also a lot of lunatics, fools, sharks, widows and orphans, government actors with ulterior motives, algorithmic traders, greedy speculators, and whack jobs. The markets resemble the Star Wars bar scene more than they do the economics faculty lounge at Princeton."
This is from a piece by the excellent Daniel Gross on Slate, discussing divergent views about what the rise in US bond yields signifies (inflation fears? incipient recovery?). The whole article is worth reading, but this quote is worth framing.
No comments:
Post a Comment