A fundamental component of Free Market Investing is the Efficient Market Hypothesis, first explained by Eugene F. Fama in his 1965 doctoral thesis:
“In an efficient market, at any point in time, the actual price of a security will be a good estimate of its intrinsic value.”
– Eugene F. Fama
The stock market, the media, and popular culture, by and large, encourage behavior consistent with the belief that the market is inefficient. You must understand that there is a choice to be made about how you believe the market works.
Shore Point Advisors believes that markets are efficient, so much so that it is one of our Core Values. We focus on capturing market returns utilizing asset-class or structured funds, diversifying prudently, and eliminating stock picking, track record investing and market timing from the investment process.
Source: Markowitz, Harry. “Portfolio Selection”. Journal of Finance, 1952