what would happen if all maket participants were omniscient? - page 2

[Amir Yacoby]

mrluck012:

thanks for answering folks, but that's not nonsense, a guy named Eugene Fama, says exactly what i answered,  that the market is always right, like it is omniscient about the price itself, and he even won a Nobel prize proving it.

What does it mean the market is always right? It is meaningless. Who else can say if the market is right or wrong? No one, just the market. Whatever the price is, it is right.

That knows every small child.

And it's true about life too. What ever happens, is right. Life is always right. It is true, No one can contradict.

But you can't use it to make money.

[William Roeder]

A market exists, to facilitate trades. Two people agree on price but disagree on value; one buys, one sells. The market is not right or wrong, it just is.

If "all market participants were omniscient" everyone would either want to buy or sell, but there would be nobody to take the opposite side.

[Amir Yacoby]

Are you imagining any one calculating the right price, even a nobel prize winner, and the conclusion is that the right price should go 1000 pips up, and then the market goes on opposite direction to 1000 pips down saying: "No, the market is wrong. My calculations show this!"

The market will be always right, no matter what the calculations of the right price shows.

[Alain Verleyen]

This thread is fascinating.