RE: UKNM: More overvalued stocks

[Phil Sykes]

 To throw in some of my piss-poor economics knowledge, doesn't an perfectly

efficient market depend on perfect knowledge?

 

 I don't think the vast majority of people who've bought Internet stocks in

the US have anything approaching perfect knowledge - many of them just seem

to buy anything with .com in it.


Phil Sykes, CentreNet

http://www.centre.net.uk/


> -----Original Message-----

>

From: Sean Phelan [seanmultimap [dot] com (mailto:seanmultimap [dot] com)]

> Sent: Friday, July 23, 1999 10:34 AM

>

To: uk-netmarketingchinwag [dot] com

> Subject: Re: UKNM: More overvalued stocks

> 

> 

> Hm.... "overvalued"... "overpriced"....

> 

> Doesn't anybody believe in the theory of efficient markets any more?

> 

> If you don't believe that markets are efficient today (ie 

> market prices

> reflect all available information, discounted for risk, 

> liquidity, etc),

> do you believe that markets have historically been efficient?

> 

> There is a vast body of research (and I mean real research by 

> very smart

> people who can not only spell econometrics, but understand 

> what it means

> and have spent entire PhDs and careers doing it) that 

> supports the belief

> that markets have been efficient from 15th century Florence 

> to the present

> day. The last two hundred year's sterling bond prices, for example,

> exhibited the behaviour predicted by today's asset pricing 

> models, long

> before the models were created.

> 

> If markets were efficient in the past, before we had spreadsheets,

> mechanical calculators or even the telegraph to communicate 

> information

> rapidly, can somebody PLEASE explain to me how we can 

> POSSIBLY think that

> markets are now inefficient, and are unable to accurately 

> reflect all the

> available information about a share price?

> 

> bon weekend, tout le monde...

> Sean

> 

> 

> >...and maybe the stock markets are finally getting wise to market

> >capitalisations without any real revenues:

> >

> >http://www.wired.com/news/news/business/story/20888.html

> >

> >At 10:01 21/07/99 +0100, azeem azhar, lists wrote:

> >>Actually, while we've all gone loopy loop about Freeserve, 

> I'm surprised

> >>no-one else is talking about the other overpriced stocks:

> >>

> >>The Exchange

> >>

> >>QXL

> >>

> >>Any takers for these too?

> >>a

> >>

> >>

> >>azeem azhar 			| www 

http://azeem.azhar.co.uk/ (*)

>>tel 07958 544 593 		| icq 315460

>>fax 0207 691 0464		| pgp http://azeem.azhar.co.uk/pgp/

>>

>>* downdated

>

>Toodle Pip

>

>Sam

>-----------------------------------------------------

> Chinwag - http://www.chinwag.com


=============================================================

Sean Phelan

seanmultimap [dot] com

     http://www.multimap.com

phone (within UK): 0171 433 0460      fax (UK): 0171 209 5194

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