Market Ethos - March 20th, 2017

Market Efficiency

 

In this installment of Market Ethos, we take a look at market efficiency, which sits at the core of the active management vs. passive indexing debate. We find that market efficiency varies considerably from one market to another.  Those less efficient markets appear to give active management an edge while more efficient markets passive gets the advantage.   There are also behavioral factors that limit market efficiency. We will certainly write on this topic again.