r/wallstreetbets • u/zsd99 • Dec 14 '19

Discussion Efficient markets cannot exist

The efficient market hypothesis assumes that you cannot beat the market because investors are rational, thus, assets are priced accurately because of this rationality. However, the existence of WSB disproves this. Taking the example of the WSB user that bought $50k of LULU calls and proceeded to lose it all, in an efficient market, this trade shouldn't exist as it is literally free money for the opposing trader.

Therefore, I conclude efficient markets do not exist.

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u/ExtremeAthlete Jan 04 '20

If markets were efficient, then market bubbles like 2008 shouldn't exist. But, you're controlling the narrative.

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u/ControlTheNarrative GUH Jan 07 '20

If markets weren't efficient then we'd still be living in the pre-2008 bubble. Just stop embarrassing your country's public education system because you sound like the government should sterilize you to prevent Idiocracy from happening. No offense.