The market is already very efficient. Any contrived "alpha" returns based on a trading strategy may be an illusion of randomness, via curve-fitting or p-hacking, or mistaking spurious correlations for causation. It would be much easier to invent a perpetual motion machine than generating any meaningful alpha for any meaningful length of time; most are duds and only a tiny few supposedly beat the market as an artefact of survivorship bias.
Thank you so much for this video Dr. Wright. Shocked the January effect is actually true. Is there an actual way to test the significance in excel of those returns on those holidays? Maybe the sample is simply to small and randomness makes it look their is an actual effect.
Your definition of market efficiency is a false premise. News / public information / all subjective. Even earnings, different sectors growth/cyclical.. this is not what an efficient market would be even in your perfect world. The market is based on human beings trying to make money and their emotions
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The market is already very efficient. Any contrived "alpha" returns based on a trading strategy may be an illusion of randomness, via curve-fitting or p-hacking, or mistaking spurious correlations for causation. It would be much easier to invent a perpetual motion machine than generating any meaningful alpha for any meaningful length of time; most are duds and only a tiny few supposedly beat the market as an artefact of survivorship bias.
Hello sir, could you explain calculation of small firm effect.
Hello, Where can i find this excel sheet, what use in the video? :)
Thank you so much for this video Dr. Wright. Shocked the January effect is actually true. Is there an actual way to test the significance in excel of those returns on those holidays? Maybe the sample is simply to small and randomness makes it look their is an actual effect.
Hello there, I am doing my thesis on monday effect and this video saved my day. Thank you so much!
Mate you don't do this justice by not recording in HD....
Your definition of market efficiency is a false premise. News / public information / all subjective. Even earnings, different sectors growth/cyclical.. this is not what an efficient market would be even in your perfect world. The market is based on human beings trying to make money and their emotions