Picking Dividend Stocks for the Next 5 Years
According to
market efficiency hypothesis
, the markets are informally efficient. If investors have access to the same information, they cannot beat each other. There are three types of market efficiency: The weak form of efficiency suggests that prices reflect all publicly available information. Semi-strong form of efficiency suggests any new information is quickly reflected in the prices. Thus, unless you are a super-fast trader you cannot beat the market. The strong form of market efficiency suggests that the prices reflect all available and yet to be released information. Even an insider cannot beat the market.
I am not in favor of efficient market hypothesis. There are so many different types of investors in the stock market. They do differ in their primary investment philosophy. Some enjoy the swings in highly speculative stocks, some try to catch peaks and bottoms, and some just look for safe retirement ideas. Experience shows that... Read more