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Don’t Rely on Easy Assumptions of Efficient Market Theory

We couldn’t agree with the infamous Dr. Benoit  Mandlebrot  more in this 2009 interview by Financial Times.     Nothing  can prevent a company from a price drop or becoming instantly worthless – NOW  is the time to start again with theories of markets. We can’t rely on the easy assumptions of efficient markets and need to reevaluate our approaches and develop new theory.  Prices are discontinuous – there is no inertia.    Benoit Mandelbrot (may he rest in peace) was an emeritus professor of mathematics at Yale University

http://video.ft.com/v/63078301001/Need-for-new-market-theories-Mandelbrot

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