A Random Walk Down Wall Street Including A Life... [CRACKED]

In the long term, however, the theory loses credibility. The success of long-term investing highlights the essential limitation of random walk theory: stock prices do follow a trend toward predictable outcomes. If stock prices moved in an entirely random fashion, the history of the stock market would look like a scatter plot without pattern. Indices like the S&P 500 and the Dow Jones Industrial Average would be as likely to move down as up in any given year, and the market overall would trend toward net-zero gains and losses over time. This is observably untrue.

A Random Walk Down Wall Street Including A Life...

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