Stock price prediction is based on the assumption that the efficient market hypothesis doesn't hold true. The efficient market hypothesis states that, at any point, the price of stock is already reflective of all information and rational expectations. Hence, no amount of insight generated from historical price trends or influencer variables will predict the stock price movement effectively. There is academic evidence to support the efficient market hypothesis, but also an acknowledgement that there are some individuals and institutions who have managed to beat the average returns of the stock market by using their judgment. However, it is worth noting that stock prices are highly reactive ...
Predicting stock prices and making portfolio decisions
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