The efficient market hypothesis is analogous to Newtonian physics: a useful close approximation when only a small fraction of the market behaves that way, but inappropriate at scale—just as Newtonian physics fails at the quantum/semiconductor scale—so once the majority of the market behaves passively, EMH-based models break down.

definitionpending

Speaker

Mike Green

Evidence Quote

Once you move from a small portion of the market that is investing as if... the efficient market hypothesis was right to the majority of market behaving in this way. It's very much like that difference between Newtonian physics... and quantum physics

Source

The Trillion Dollar Trap | Mike Green on Passive Investing's Fatal Design FlawExcess Returns
Created: 6/18/2026, 1:59:25 PM

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