The Efficient Market Hypothesis (EMH) is incorrect, and the hypothesis to replace it with is the Inefficient Market Hypothesis (IMH). Markets are always moving towards efficient operation but never actually achieve it, sometimes deviating quite far from efficiency. The IMH states: Spot market prices are almost always wrong. However over the course of a full business cycle the average price was the correct price. Therefore it is next to impossible to beat the market due inability in determining whether the spot price is either too high or too low, or the very unlikely but possible situation whereby the spot price is correct. Reasons EMH is incorrect and why we new have IMH: Insider dealing Credit market issues Asymmetric information Information overload Forced selling Rapid changes in business environment due to government actions Time delays in assimilating information