Valuation-Informed Indexing #582: The Efficient Market Concept Is Wrong But Not Absurd

I’ve posted Entry #582 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called The Efficient Market Concept Is Wrong But Not Absurd.

Juicy Excerpt: 

It’s the idea that the stock market is efficient that started all the trouble. If no one had ever thought of that one, we all would have been market timing all along. In every other market that exists, people buy more of the thing offered for sale when it is priced well than they do when that thing is not priced well. So why doesn’t that rule apply for stocks? It’s because there were people who said that the market is efficient. If that were so, stocks could never be mispriced. So there would be no need for market timing and it wouldn’t serve any good purpose.