[SEQ RERUN] Markets are Anti-Inductive

by MinibearRex1 min read11th Mar 2013No comments

3

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Today's post, Markets are Anti-Inductive was originally published on 26 February 2009. A summary (taken from the LW wiki):

 

The standard theory of efficient markets says that exploitable regularities in the past, shouldn't be exploitable in the future. If everybody knows that "stocks have always gone up", then there's no reason to sell them.


Discuss the post here (rather than in the comments to the original post).

This post is part of the Rerunning the Sequences series, where we'll be going through Eliezer Yudkowsky's old posts in order so that people who are interested can (re-)read and discuss them. The previous post was Formative Youth, and you can use the sequence_reruns tag or rss feed to follow the rest of the series.

Sequence reruns are a community-driven effort. You can participate by re-reading the sequence post, discussing it here, posting the next day's sequence reruns post, or summarizing forthcoming articles on the wiki. Go here for more details, or to have meta discussions about the Rerunning the Sequences series.