[DcifrThs]

zygote,

please explain how that very long article goes over our discussion well.

our discussion was about how markets over time tend to rise and that investing passively is not speculating. you mentioned that there NEEDED to be mispricing in order for there to be future profits. i mentioned that even if you believe markets are ALWAYS correctly priced, you would still make money from passively investing in an index as a result of the risk premium you'd need to put money there (that is unless im mistaken and i was having that discussion with somebody else)

this article goes over in great detail the problems with the efficient market hypothesis (and it does so pretty well).

i agree with every point made in the article. investors have different degrees of info. liquidity affects returns. some managers are good enough to beat markets. investors have different risk aversion and require different risk premiums for investing/speculating and so on.

but how does that tie back to our initial discussion.

can you, in one paragraph, summarize how this article relates to our discussion about collecting risk premia vs. speculation in a non-trial way? (i.e. in a way different from the way i mentioend above)

overall though, for somebody who compeltely believes in EMH, i think the article would be a great read and provide some new info to that person. it is well written and goes over most everything i'd want to touch on writing an article like that.

i just don't think it ties in well to our previous discussion.

also it was a long ass read and you could have read it yourself and summed it up succintly in bullets or in a long version in 2 paragraphs.

Barron