Imagine that every adult in America became a securities analyst, full-time for many, part-time for the rest. Every citizen would scour the news for fast-breaking corporate developments. Some would run spreadsheets and crunch numbers. Others would analyze competitive factors for various businesses, assess managerial competence, and strive to identify the next new thing. Now, for sure, the financial markets would have become efficient, right? Actually, no. The reason that capital markets are, have always been, and will always be inefficient is not because of a shortage of timely information, the lack of analytical tools, or inadequate capital. The Internet will not make the market efficient, even though it makes far more information available, faster than ever before, right at everyone's fingertips. Markets are inefficient because of human nature—innate, deep-rooted, permanent. People don't consciously choose to invest with emotion—they simply can't help it
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