Market Valuations - What do they really mean?

[OldShooter]

... About Farma and his talk, I read "A Random Walk down Wall Street" by Malkiel a long time ago. I got the gist of the subject from this book, and have not found anything substantial by anybody to add to that. Malkiel may not be the 1st to write about this subject, but I liked his style a lot.

FWIW, the video I linked has little to do with Malkiel or the random walk. It is Fama and Thaler discussing exactly your topic, the rationality/irrationality of stock market pricing. But if you're not interested there's no reason to watch.

 

[NW-Bound]

I have skipped through the video, but read the transcript.

While the term "Random Walk" is in Malkiel's book title, he talks about a lot more than that, including past market mania, and how investors place a value on stocks, what EMH and indexing are, etc...

Wikipedia claims that "Random Walk" is the book most often cited by EMH advocates.