Are Markets Efficient ? Not Always …

There are lessons to be learned from certain events. Recently one lesson played out loud and clear.

What a wild ride !

Proof Of Market Inefficiencies

Stock Pop Chart(Sorry the chart is hard to read, its cropped to cut out the name)

This 5 cent stock with no earnings, one employee, and a suspicious foreign address jumped to over $21, nearing a multi billion dollar valuation. Regulators stepped in and halted the stock for multiple days. When it was re-opened, it crashed back down to earth.

Magnified Example

This of course is an extreme example but it is worth remembering at all times, the markets are not always efficient. (Thank goodness, if they were perfectly, there would be less opportunity to earn a return.)

Have a Great Day!

John A. Kvale CFA, CFP

PS Beware of any stock under $5 … usually bad news.
8222 Douglas Ave # 590
Dallas, TX 75225






Filed under: Investing/Financial Planning, Market Comments Tagged: Crazy Market, Unefficient Markets

About the author

John Kvale

John A. Kvale CFA, CFP, is the founder of J.K. Financial, Inc. and with 22 years of industry experience is currently the president of J.K.Financial, a fee only financial planning and wealth management firm. J.K. Financial specializes in wealth management, adhering to unique approaches to investing in the capital markets. The company has a global presence, serving individual and institutional clients across the United States as well as several foreign countries.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Copyright 2014   About Us   Contact Us   Our Advisors       Login