Back to the Future
As you'll know the Psy-Fi Blog spends a lot of time pointing out to a (largely disinterested) audience of investors that there's a huge amount of psychological research out there that we can use to guide our investing behavior. In fact there are vast reams of the stuff, far too much for me to ever even summarize, let alone analyse. But as we saw in Behavioral Law and Disorder the Supreme Court, like most investors, has failed to take account of this by requiring investment professionals to benchmark themselves against the Efficient Markets Hypothesis, a failed meme if there ever was one.
Well, no more. The Supreme Court of the United States (aka SCOTUS) has donned kipper ties and white suits and boogied into the late-mid-twentieth century with a ruling that markets can no longer be regarded as entirely efficient. Somewhat surprisingly, however, the justices have based their findings not on the wealth of research that's accumulated over half a century but on an op-ed piece in the New York Times. It makes you wonder why you bother.