Mutual Funds And Market Efficiency

The Efficient Markets Hypothesis is one of the most tested and most contentious theories in social sciences. A popular test of market efficiency is whether professional money managers can outperform the stock market. In a nod toward market efficiency, through November 25, about 85 percent of mutual fund managers have underperformed the stock market. The performance of actively managed mutual funds is the worst one-year performance in 30 years.  

Christmas Price Index

The Christmas Price Index (CPI) is out and the cost of Christmas increased a mild 1 percent this year. In fact, only 4 of 12 items for my true love increased in price this year. Six geese-a-laying jumped an incredible 71.4 percent, while three French hens jumped 10 percent. However, since these make up a relatively small portion of the total index, the effect on the index inflation was small. The 1 percent increase in the CPI over the past year was the seventh smallest over the 30 years that PNC has computed the index.