Market Asymmetry is reality.
Buffett's statement suggests that if markets were always efficient, meaning that all available information was accurately and instantly reflected in stock prices, there would be no opportunity for investors like him to find undervalued stocks and make profits. In such a scenario, he implies that his skills as an investor would be rendered useless, and he would have no choice but to rely on charity, metaphorically depicted as being a bum on the street with a tin cup.
Professor
Hirshleifer at Ohio State University found that morning sunshine correlates
with stock returns. He examined 26 stock market indices around the globe for
the period of 1982 to 1997. He looked at sunshine versus some cloud cover in
the city of a nation’s largest stock exchange. “In New York City, the
annualized nominal market return on perfectly sunny days is approximately 24.8
percent per year versus 8.7 percent per year on perfectly cloudy days.” He
cites evidence that sunshine improves investors’ moods. When their moods are
elevated, investors are less risk averse and are more likely to buy.
