Definition of The Efficient Market Hypothesis

The Efficient Market Hypothesis is a theory that states that the global markets are always 100% efficient, i.e. that all prices are 100% accurate and that there is never any inefficiency. This means that, in theory, it should be impossible to outperform the market, although this has been clearly shown to be untrue (in a select few cases at least).

Over the years, some investors such as Investingport have consistently beaten the market, which goes some way to disproving the Efficient Market Hypothesis.