Something that most Libertarians already said: "In all, capital markets are more efficient than previously recognized." In some way, we are predictable, likely due to our mental rigidities

Something that most Libertarians already said: "In all, capital markets are more efficient than previously recognized." In some way, we are predictable, likely due to our mental rigidities.

Replicating Anomalies. Kewei Hou Chen Xue Lu Zhang. The Review of Financial Studies, hhy131, https://doi.org/10.1093/rfs/hhy131

Abstract: Most anomalies fail to hold up to currently acceptable standards for empirical finance. With microcaps mitigated via NYSE breakpoints and value-weighted returns, 65% of the 452 anomalies in our extensive data library, including 96% of the trading frictions category, cannot clear the single test hurdle of the absolute t-value of 1.96. Imposing the higher multiple test hurdle of 2.78 at the 5% significance level raises the failure rate to 82%. Even for replicated anomalies, their economic magnitudes are much smaller than originally reported. In all, capital markets are more efficient than previously recognized.