More than just fear and greed

Professional Adviser
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Chris Wagstaff takes a look at investment styles that lead investors to make the investment decisions they do

Since the early 1960s, academics and market practitioners alike have debated the efficient markets hypothesis (EMH). That is, whether stock prices reflect all publicly available information, react instantaneously and rationally to market news and move independently of past trends. Behind the theory lies a key assumption that investors are rational, risk adverse, seek to maximise their wealth, and possess a limitless capacity to source and process information accurately. The implication of the EMH, that one cannot consistently outperform the market on a risk-adjusted basis, has always lo...

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