The Case Against Efficient Market Hypothesis

The Efficient Market Hypothesis (EMH) states that all assets are traded at fair value at all times because all the information is available to all the market participants. Thus, all participants react based on new information that leaves no room for alpha. There are a number of criticisms I have against the EMH — they are as follows.

Nevertheless, an efficient market can happen only if all the agents in the market operate under the same level of capability. Participants would need to analyze the market scenario in the exact same and correct ways with…