Louis Bachelier's Theory of Speculation

If asset prices in the short term show an identifiable pattern, won’t speculators find this pattern and exploit it, thereby eliminating it?

Oct 15

Colourized photograph of Louis Jean-Baptiste Alphonse Bachelier at the age of 20 in 1890, and Bachelier’s doctoral dissertation Théorie de la spéculation (1900).

Are financial markets inherently unpredictable? Let’s suppose they aren’t. Let’s suppose there are patterns that may be discerned by humans or computers, and acted upon. What would that do to th…

Louis Bachelier's Theory of Speculation

If asset prices in the short term show an identifiable pattern, won’t speculators find this pattern and exploit it, thereby eliminating it?

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