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My response to the Efficient Market Hypothsis (EMH) is generally favorable, especially as a justification for diversification and a broad asset allocation stategy. But David Dreman's running critique of EMH in his Contrarian Investment Strategies, the Next Generation has certainly caused me to take a more skeptical view.

A couple days ago I ran across a web article that gives an excellent (if somewhat academic) overview of EMH and its critics. See the abstract and link below:

Abstract: The hitherto dominant paradigm in financial market research, the Efficient Market Hypothesis (EMH), has been put on trial recently and subjected to critical re-examination. The preliminary evidence indicates that the initial confidence in the Efficient Market Hypothesis might have been misplaced. It is observed that financial equilibrium models based on EMH fail to depict trading operations in the real world. Various anomalies and inconsistent results call for refinement of the existing paradigm. It is proposed in this article that a more coherent theory of stock market behavior can be developed by incorporating Keynesian ideologies on the speculative behavior of investors.

http://www.westga.edu/~bquest/2002/market.htm
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