It's a tricky thing! You explained it so well that the best way for me to explain it was exactly as you did.

k00b

MONEY CLASS OF THE DAY: Market Efficiency: You Come Into MYYYYY HOUSE?!

 explains market efficiency, the efficient market hypothesis, and the joint hypothesis problem.

, (and it's lovely to see you work through it in real time). Just a slight adjustment: the two hypotheses advanced in the EMH/joint-hypothesis problem are:

...because, of course, what you're saying when you're saying that something is under-/overvalued is that the market 

: then I kept listening and you re-stated it that way. THANKS!

SN Saturday Newsletter 5/10/25

> MONEY CLASS OF THE DAY: Market Efficiency: You Come Into MYYYYY HOUSE?!
@denlillaapan explains market efficiency, the efficient market hypothesis, and the joint hypothesis problem.
5.8k sats \ 31 comments \ @denlillaapan

Very nice summary @k00b, (and it's lovely to see you work through it in real time). Just a slight adjustment: the two hypotheses advanced in the EMH/joint-hypothesis problem are:
- Asset pricing model is correct
- **market _efficiency_.**

...because, of course, what you're saying when you're saying that something is under-/overvalued is that the market _isn't efficient_, since it is _mispricing_ this one thing. 

_edit_: then I kept listening and you re-stated it that way. THANKS! 