Academic

Markets are "Delusional"

By Gordon Smith, Christine, Hurt, Vic Fleischer, Fred Tung, Lisa Fairfax, David Zaring

That's Reuters financial blogger Felix Salmon and Fortune magazine's Leigh Gallagher in last Friday's weekly wrap on Marketplace. Stocks are up again today, and the W$J is reporting that March bulls have turned bearish now that the market followed their advice. In the meantime, Bernanke's optimism is contagious, as markets around the world rise.

There was a time, not so long ago, when people who questioned market efficiency were outliers. Of course, traders have never been fans of the random walk, but remember when "irrational exuberance" was an interesting idea? Nowadays, saying that markets are "delusional" isn't interesting anymore. We already know that.

Given that investing talk, like fashion, tends to run in cycles, I suggest that the time is ripe for the republication of Dow 36,000. Though if Rupert Murdoch sells the DJIA, we'll have to re-title the book.

Full post as published by Conglomerate on August 24, 2009 (boomark / email).