Image Source: The efficient markets hypothesis indicates that new information should induce a revision to the present discounted value of future dividends, and hence a change in the market value. Apparently, news came today.Source: , 1:50 CT, 4/1/2024.Of course, the efficient markets hypothesis would’ve also suggested that the price of this stock was way out of proportion to fundamentals (as perceived by rational agents). However, fads (as defined by ) can be very long-lasting, and difficult to detect using the standard random walk criterion.Addendum:Since the consolidated group only started trading last Tuesday, maybe better to show what’s happened over the past week.Source: , 2:15 CT, 4/1/2024.More By This Author:Explaining The 2022-23 Disinflation Out-Of-SampleGDP, GDO, GDP+ And Final SalesBusiness Cycle Indicators: February Personal Income, Consumption, And January Mfg/Trade Industry Sales
An Event Study: News And Trump Media And Technology Group, Monday, April 1
