Quote Of The Day.

From an article about physicists turned money managers in The New York Times:

"markets are not perfectly efficient — prices do not always adjust to right level and people are not perfectly rational. Indeed, Dr. Derman said, the idea of a “right level” is “a bit of a fiction.” As a result, prices do not fluctuate according to Brownian motion. Rather, he said: “Markets tend to drift upward or cascade down. You get slow rises and dramatic falls."

Link: http://www.nytimes.com/2009/03/10/science/10quant.html?pagewanted=1&_r=1&adxnnl=1&adxnnlx=1236700812-E4EYrb5W2btFwSFSPH5OSw