Economic Theory
By John Schroy, on June 17th, 2006 |

The Efficient Market Hypothesis continues to impede understanding of how capital markets work. This hypothesis suggests that world capital markets are guided by crowds of rational, competing, profit-maximizers, each trying to predict future market values of individual securities.
The Efficient Market Hypothesis has never been proven. Indeed, no serious attempt has ever been made to subject this hypothesis to scientific scrutiny.
The Common Stock Legend
By John Schroy, on June 1st, 2006 |

The topic “Baby Boom — Baby Bomb?” was debated by Michael Milken and Professor Jeremy Siegel in April 2006. This debate was featured in BusinessWeek in the article, “When Boomers Cash Out: A buy-and-hold legend sees tough times ahead.” Professor Siegel is the guru of the Common Stock Legend, having authored the best-seller, “Stocks for the Long Run”,
US Stocks
By John Schroy, on May 31st, 2006 |

The Sarbanes-Oxley Act of 2002, by discouraging companies to go public, will exacerbate the shortage of equities, with a negative effect on the US stock market, although this was not the intent of its authors. Poorly drafted, ill-conceived, and unfair this law does little to protect investors.
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