Yes - markets are efficient

Greg Mankiw says what almost all economists have known for years - that, for most practical purposes, stock markets are efficient, in the sense that investors are better off in tracker funds than in actively managed ones.
This is true in the UK as well as US. Figures from Trustnet show that almost two-thirds of actively managed unit trusts have under-performed the best tracker fund.
The facts, then, are clear. Perhaps the most expensive and long-running experiment in history shows that markets are roughly efficient, in that the experts don't beat them...more>>