As an active manager of debt and equity investment portfolios it will come as no shock that I do not believe in the efficient markets hypothesis (EMH).
From Investopedia.com:
The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all available information and consistent alpha generation is impossible. According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices.
While there are numerous examples that clearly debunk EMH, periodically we stumble upon one so prodigious that it is worth sharing. This week that example is MBIA, an insurance comapny that is seeing its share price rise by a stunning 75% today alone:
