Fensham Howes in the press - Financial Times
17th November 2009
The Financial Times recently published the following letter written by Colin Barrett, Principal at Fensham Howes.
Colin was writing in response to an article written by Financial Times regular columnist John Kay.
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Activity that brings its own prosperity
Published: October 9 2009 03:00 | Last updated: October 9 2009 03:00
From Mr Colin Barrett.
Sir,
Whether one agrees with the fundamental tenets of the efficient market hypothesis or not, John Kay ("Markets after the age of efficiency”, October 7) is wrong to assert that high volumes of market activity represent an “inherent contradiction” in the theory.
The only thing that can be reliably deduced from such high volumes of buying and selling is that the brokers and fund managers participating in these activities get paid handsomely for them – regardless of the long-term performance of the funds or portfolios they manage on behalf of their unsuspecting clients.
The fact that astrology is a thriving multi-million pound industry does not provide evidence that our lives are governed by the alignment of the stars; it simply informs us that people are happy to part with their money in the belief that they are.
Colin Barrett,
Fensham Howes,
Bramham, West Yorks, UK
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