Investors Chronicle, October 8th, 2004
If you want a knock-out blow against efficient market theory, just look at recent moves in the discount on Edinburgh's UK tracker investment trust. In the past 12 months, it has ranged between 1 per cent and 8 per cent - it's now 4.6 per cent.
Efficient market theory cannot easily explain so big and volatile a discount, especially on a trust whose net assets are so easily replicable.
Instead, many economists believe big swings in discounts like these are a sign of moves in investors' sentiment. A big discount suggests investors are depressed or nervous, and this should lead to rising share...
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