The 'Noisy Market' Hypothesis

An interesting WSJ article by Jeremy Siegel, finance professor at Wharton. He makes the case for a noisy market hypothesis rather than the efficient market hypothesis. His noisy market hypothesis argues that "security prices are influenced by by speculators and momentum traders, as well as by insiders and institutions that often buy and sell stocks for reasons unrelated to fundamental value, such as for diversification, liquidity and taxes."

http://online.wsj.com/article/SB115025119289879729-search.html?KEYWORDS=noisy+market+hypothesis&COLLECTION=wsjie/6month