Are financial markets random?

December 5, 2022

Financial markets are not completely random, but they do exhibit a certain degree of randomness or unpredictability. This is because a variety of factors can influence market movements, including economic conditions, political events, and investor sentiment, among others. These factors can interact in complex ways, making it difficult to predict exactly how markets will behave at any given time. However, while markets may be unpredictable in the short term, there are certain patterns and trends that can be observed over longer periods of time, which can help investors make more informed decisions.

“Of over 1000 stock recommendations made by the typical brokerage firm during the first quarter of 2001 (the peak if the bull market), only 7 were sell recommendations.” – John C. Bogle

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