Investors who try to time the market usually do so because they believe that stocks aren’t trading at their true value. The efficient market hypothesis is contradictory to this idea, stating that all share prices reflect their fair market value. In other words, the efficient market hypothesis states that stock prices have already factored in all available information. This hypothesis is one that can significantly impact one’s investing strategies since the premise of the theory is that it’s impossible to beat the market. What is the Efficient Market Hypothesis? The efficient market hypothesis emanates from a body of work called “Efficient Capital Markets: A Review of Theory and Empirical Work,” by Eugene Fama. The Nobel laureate in economic sciences is widely recognized as the “father of modern finance”. The basis of the theory is that engaging in investing strategies like hand picking undervalued stocks or trying to predict market trends using technical analysis is a waste of time. That said, there are several counter arguments for the efficient market hypothesis, some of which come from investors who have successfully beaten the market. The existence of