Why Market Inefficiencies are Interesting

It might not sound like the sort of topic to interest you, but nevertheless some people find this quite an interesting area to study and get involved in inefficient markets.

Whilst most people naturally think that inefficiency in a market is by no means a good thing and shy away, it can be seen by some to actively be an advantage. If you don't see why that could or should be, then here is an idea of why:

The fact is that it may be possible to pick up bargains due to the lack of knowledge and expertise that may be around and may be what is making the market inefficient, so in this circumstance there could be many great opportunities out there that someone with knowledge gets which the others miss out on.

In an efficient market then by definition this should not happen as the market has and knows all the relevant information at that time, so you wouldn't get access to such bargains.

In summary an inefficient market can be good for those with the right level of knowledge to spot good investment opportunities.

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