"The Efficient Market Hypothesis holds that the prices in any financial market already reflect all available information relevant to what's being traded within them."
"If the EMH is true, then it must also be true that nobody can beat the market, no matter how deep their experience or developed their instinct for picking stocks."
"Investing had an almost mystical quality about it in the first half of the twentieth century, a quality swept away by the 'data revolution' of the second half."
"Eugene Fama, a Nobel Laureate economist, has done more than anyone alive to refine the EMH and keep it in circulation."
The Efficient Market Hypothesis (EMH) posits that financial market prices incorporate all available information, implying that no investor can consistently outperform the market. Nobel Laureate Eugene Fama has significantly contributed to the EMH, which has gained traction since the early 1980s with the establishment of Dimensional Fund Advisors. This shift has transformed investing from a mystical practice to one grounded in data, particularly following the data revolution of the late 20th century, which has reshaped investment strategies and approaches.
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