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Ep. 267: Dennis Gartman Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Importance of Mass Psychology in Economics

I find it almost comical, this belief in the efficient market because I find it refuted in just too many different men. The most important thing that's happened in the study of economics in the past 20 years is the putting on a pedestal ... psychology has something to do with economics. That people are human. We are irrational, far more often than we're rational. As I like to say, we are irrational beings dealing with rational information and sometimes we're rational beings dealing with irrational information. Out of that, how can you get substantive rationality? And that's what the efficient market theory seems to believe in.

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