Are Our Financial Markets Efficient?

We live in a capitalist society; however there is a growing trend to regard the word “capitalist” negatively. However there is nothing negative about it. The root word for capitalist is capital. There are many definitions for this word, however in the financial community it is used to define “assets”. To take this thought a bit further; a capitalist society is one based on assets under the control of the individual. So, perhaps some of the negative connotation may be negated by substituting the phrase “capitalist society” with “free market society”. It’s the notion that the market, not government regulation, ultimately determines success or failure. It’s just that simple.
One cannot have a genuine discussion on any topic without reviewing the opposing point of view. In 1886 Karl Marx published his first edition of Das Kapital. Marx believed that the wealthy were only wealthy because they suppressed the lower classes of effectively took the assets from those who had less.
The truth: in our society, if you want a candy bar, you will buy one. The store who sold you the candy bar profits from your purchase. The manufacturer who produced the candy bar profits from your purchase. It may be true that the owners of companies involved profited the most, however they assumed the most risk as well. Wages were paid to the store clerk, delivery driver and factory workers. In addition, there are overhead costs: appeal of the store where the candy bar was purchased, insurance on the property, and costs for equipment, maintenance, etc.
What if you decided to buy a different candy bar from a different store? The clerk would still get paid, until the free market decided that the store is unfit. The one assuming the most risk should profit the most. There is nothing wrong with factory workers, they work very hard. However, factory workers typically don't fret over the commodities pricing of cocoa six months from now.
Marx believed that if the state controlled all commerce, then all of society would be equal and thrive as a unit together. Furthermore, as a society, all assets would be shared and citizens would work harder to have an equal share in more assets. Sounds good in theory, doesn’t it? But we have yet to see a society that has taken this concept and thrived. All one has to do is look at Russia, North Korea, Venezuela, Cuba, etc.
The market will decide what candy bars are to be on the market and how they should be priced. Furthermore, the market will decide what store to buy the bar's from. The market will work correctly if we let it. the retail market works the same as the stock market.

Most of us would agree that one would want to be in stocks or equities in order to outpace inflation. The Coached Investor knows how free markets work. They know that if our markets are left untouched they will operate efficiently. They are certain that the market knows all that is known and only new and unpredictable news and events affect market prices. Coached Investors know that individuals by themselves may not always be correct concerning the market, but as a whole the market is always right.
The Coached investor is not concerned with the price of Cocoa Futures or the popularity of the latest candy bar. The Coached Investor does not try to chase the latest fad or run from the newest fear with their investment holdings. The Coached Investor understands these things and knows how invest in the efficient market; our market.