Efficient-market hypothesis - Wikipedia
Investor Home - The Efficient Market Hypothesis
According to the efficient-market theory, you'd be best advised to followa PASSIVE INVESTMENT STRATEGY:Switch to index funds (mutual funds that simply track astock-market average, rather than being actively managed),and hold them over a very long time period (a buy-and-hold, notbuy-and-sell, strategy).
Efficient Market Hypothesis: Is The Stock Market Efficient?
The efficient-market hypothesis (or theory) says the stock market asa whole does the best jobpossible in valuing and pricing stocks. The market acts rationally,says the theory, using allavailable, relevant information and leaving no profit opportunityunexploited. This would implythat strategic stock picking is pointless, because the market hasalready priced every stockappropriately, given the current information.
The efficient-market theory is an application of a theory that has beenextremely influential inmacroeconomics over the past thirty years, namely--