Source: Ludwig von Mises Institute
by Laurent Hynes
“Mainstream financial academia regularly seeks to impress upon investors the supposed pointlessness of any entrepreneurial effort on their part, under the guise of cost efficiency and risk reduction. Besides misleading empirical evidence, the core argument used to justify the selection of highly passive and diversified financial products is the neoclassical efficient market hypothesis (EMH). Yet the EMH has suffered continual reputational blows, and the Austrian School’s causal-realism is well suited to disassemble it as another example of neoclassical physics envy.” (11/05/25)
https://mises.org/mises-wire/efficient-market-hypothesis-fatally-flawed