Reflections on the Efficient Market Hypothesis: 30 Years Later

Burton Malkiel, the author of the classic A Random Walk Down Wall Street, revisits his advocacy for the Efficient Market Hypothesis (EMH): “The evidence is overwhelming that active equity management is, in the words of Ellis (1998), a ‘loser’s game.’ Switching from security to security accomplishes nothing but to increase transactions costs and harm performance. Thus, even if markets are less than fully efficient, indexing is likely to produce higher rates of return than active portfolio management. Both individual and institutional investors will be well served to employ indexing.”  Read the whitepaper >>