Your opinion of asset prices ?

[NW-Bound]

Who told you that? We are supposed to buy the whole market, which diversifies away all the noise and leaves us with only the long-term market trend and the market volatility, neither of which can be diversified away.

We buy the whole market exactly because we can't "use" the fact that the EMH is often disrupted by behavioral factors. Over the long haul and over the whole market, though, the behavioral factors average to zero.

Does your "whole market" include bitcoins?

Mine doesn't. Well, I still have some MFs, and I hope their managers do not buy bitcoins.

 

[NW-Bound]

Forgive me if you already have heard this joke about Bitcoins:

Son: Dad, I want to buy a bitcoin. Can you loan me $12,573?

Dad: You want $13,863 to buy one Bitcoin? Where do you think I can come up with $10,482 for a Bitcoin? You must be crazy to think I have $14,384 to give you right now for a Bitcoin!

Why does the value of bitcoin fluctuate so much?

It's because the market is "efficient" and the price incorporates the latest info. If it is $10,482 one second, and $14,384 the next, it is so because there's some fresh "new info".

 

[Lsbcal]

Forgive me if you already have heard this joke about Bitcoins:

Son: Dad, I want to buy a bitcoin. Can you loan me $12,573?

Dad: You want $13,863 to buy one Bitcoin? Where do you think I can come up with $10,482 for a Bitcoin? You must be crazy to think I have $14,384 to give you right now for a Bitcoin!

I wonder how the telling of this joke will fair as the numbers fluctuate. Maybe take off one digit from each number or two digits or add one more digit? Who knows.