Market anomalies exist, but they are difficult to exploit from "summary" of Random Walk Guide To Investing by Burton G Malkiel
Market anomalies do indeed exist in the investment world. These are situations where the market does not operate as efficiently as the random walk theory suggests it should. For example, there may be instances where stocks are mispriced or where certain patterns emerge that seem to defy the efficient market hypothesis. However, while these anomalies may be present, the challenge lies in exploiting them for profit. This is because the market is incredibly competitive, with millions of investors all trying to outperform each other. In such an environment, any opportunities for abnormal returns are quickly identified and exploited, leading to prices adjusting rapidly to reflect al...
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