Opinion
Opinion

Do Financial Markets Operate Upon Superior Knowledge?

Do Financial Markets Operate Upon Superior Knowledge?
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Commentary

Financial markets are various individuals engaged in the buying and selling of financial assets. Most of the time, the actions of market participants are driven by popular ideas. If the decisions taken by the market participants are based on a theory which is detached from reality, then the direction of the market is likely to follow the theory. Conversely, if the market participants were to follow a theory that corresponds to reality, then the market is most likely going to reflect this.

Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.