Stock Fluctuation in an Efficient Market?

Today's post is by Saj Karsan of Saj's post is on stock fluctuation and value investing. Enjoy and be sure to leave us a comment on your favorite value stock.


In an "efficient market", all stocks are fairly priced by the market. If the US stock markets are efficient, and many finance industry professionals believe this to be the case, one cannot generate index-beating returns except through luck. However, if we were in an efficient market, it seems hard to believe that stock prices for even the most stable of companies should fluctuate so drastically from year to year and even from week to week. Yet that is exactly what happens.

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