"In fact, there are economic theories that prove markets can’t possibly be efficient: if they were, no one would have any reason to trade on their information, in which case markets would quickly disappear because of lack of interest!

"So it’s easy to poke holes in the Efficient Markets Hypothesis.  But it takes a theory to beat a theory, and the behavioral finance literature hasn’t yet offered a clear alternative that does better.  We’ve also explored aspects of psychology, neuroscience, evolutionary biology, and artificial intelligence, but while each field is of critical importance to understanding market behavior, none of them offer a complete solution. If we want to find an alternative, we’re going to have to look elsewhere.

"The Adaptive Markets Hypothesis:  We’ve travelled millions of years into our past, looked deep inside the human brain, and explored the cutting edge of current scientific theories."