An Example of the Market’s Efficiency

We believe the markets to be highly efficient.  Any new information is instantly incorporated into stock or bond prices.

An example of how efficient the market is is on display in the investigation looking into how the University of Michigan sells its consumer sentiment survey to select clients through Thomson Reuters.  The firm had been providing the data to clients two seconds before it became available to the general public.  Those that paid for that two second gap then used their high-speed trading platforms to trade on the news and expectations on how the market would react.

A mere two seconds is all it takes for the market to integrate new information.

There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. Past performance does not guarantee or predict future results. You should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Wealth Management, LLC. This information was gathered from reliable sources but we cannot guarantee accuracy. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated.
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